JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to foster growth in the country’s sports sector. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding. This agreement addresses risk-based licensing and investment promotion in sports-related activities. Officials pointed to a global sports industry valued at approximately US$521 billion as the broader market supporting this initiative.
The accord unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on issues related to business licensing. It also promotes investment and provides services for enterprises operating within the sports sector. The ministries will work together through Indonesia’s Online Single Submission system, known as OSS, to ensure streamlined coordination. Their collaboration extends to monitoring compliance, coordinating regulations, and sharing data. The framework aims to support investment development within Indonesia’s sports industry rather than targeting the creation of a US$521 billion domestic market.
Thohir highlighted that the global sports industry is valued at around US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of about 8%. This figure does not include sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials have identified both sports and sport tourism as sectors with significant economic activity tied to events, travel, and related businesses. The agreement establishes an administrative structure to facilitate investments in these areas.
Licensing framework bolsters sports investment efforts
The licensing framework relies on Government Regulation No. 28 of 2025, which forms part of the new cooperation. This regulation governs risk-based business licensing, replacing the earlier regulation issued in 2021. It also enhances the use of service deadlines within the OSS system. Under the positive fictitious approval mechanism, permits can be issued when authorities do not respond within specified timeframes. Applicants must meet all required conditions and procedures before the mechanism can be applied.
Roeslani noted that the investment ministry has issued over 250 permits through the positive fictitious approval mechanism since its implementation. These permits span the broader licensing system and are not limited to sports businesses. He emphasized that the government seeks to clarify licensing procedures for companies and investors in the sports economy. Roeslani also pointed out that tourism and other related industries are connected to sporting activities. The memorandum integrates these licensing functions into a formal interministerial coordination framework.
Enhanced government cooperation through sports agreement
The memorandum also addresses workforce capabilities and the interoperability of licensing data shared between the two ministries. It includes provisions for developing investment opportunities and promoting investments. Both ministries will coordinate efforts to monitor business compliance via OSS. These steps link sports investment with Indonesia’s existing licensing infrastructure and provide a clear basis for exchanging information and managing regulatory issues related to sports-sector enterprises.
Indonesia’s latest sports investment agreement emphasizes licensing procedures, investment facilitation, and interministerial coordination. The US$521 billion figure cited by officials reflects the estimated value of the global sports market and does not represent Indonesia’s current sports economy size. The government has combined 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.