JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened cooperation between its investment and sports ministries to boost investment in the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28. The agreement focuses on risk-based licensing procedures and the development of investment opportunities within sports-related sectors. Officials highlighted the global sports industry, valued at approximately US$521 billion, as the larger market context for this initiative.
The signed agreement connects the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on matters of business licensing. It also aims to promote investments and provide services to companies involved in sports-related fields. The ministries will coordinate through Indonesia’s Online Single Submission system, known as OSS. Their collaboration will include compliance oversight, regulatory coordination, and data sharing. This framework is designed to facilitate investment development across Indonesia’s sports sector, rather than establishing a domestic industry worth US$521 billion.
Thohir noted that the global sports industry is valued at around US$521 billion, which is roughly 8,000 trillion rupiah, with an annual growth rate of about 8%. He pointed out that this figure excludes sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials recognize both sports and sport tourism as key areas linked to economic activities such as events, travel, and supporting enterprises. The agreement creates an administrative structure to support investment activities within these sectors.
Licensing Framework Enhances Sports Investment Efforts
The new licensing system is backed by Government Regulation No. 28 of 2025, forming an integral part of the framework behind this cooperation. It governs risk-based business licensing and replaces the regulation issued in 2021. The regulation also enhances the enforcement of service deadlines within the OSS system. Through the positive fictitious approval mechanism, permits can be issued automatically when authorities fail to act within designated timeframes. Nonetheless, applicants must still meet all required conditions and procedures before this mechanism can be applied.
Roeslani stated that since the regulation’s implementation, the investment ministry has issued over 250 permits via the positive fictitious approval mechanism. This total includes permits from the broader licensing system, not solely those related to sports businesses. The government aims to establish clearer licensing procedures for companies and investors involved in the sports economy. Roeslani also identified tourism and other industries connected to sporting activities as key sectors. The memorandum formalizes these licensing functions within an interministerial coordination framework.
Expanded Government Coordination in Sports Sector
The memorandum also addresses workforce development and the interoperability of licensing data between the two ministries. Among the covered areas are investment opportunity development and investment promotion. The agreement stipulates joint oversight of compliance monitoring through OSS. These initiatives link sports investment with Indonesia’s existing national licensing infrastructure and establish a clear basis for exchanging information and managing regulatory matters related to sports-sector business activities.
Indonesia’s latest sports investment agreement thus emphasizes licensing, investment facilitation, and interagency coordination. The referenced US$521 billion figure reflects the estimated value of the global sports industry cited by Indonesian officials, not the current size of Indonesia’s domestic sports economy. The government has integrated this global market perspective with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes cooperation on sports investment within this regulatory framework.