JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at boosting activities within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the agreement on August 28. The memorandum emphasizes investment growth and the application of a risk-based licensing system. Additionally, it links sports-related investments to Indonesia’s existing national licensing framework. Officials highlighted the initiative as part of the broader global sports industry, valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will oversee licensing procedures, investment promotion, and business services. Their collaboration extends to regulatory oversight, compliance checks, and the sharing of licensing data. Indonesia employs the Online Single Submission system, or OSS, to handle business permits based on a risk evaluation process. This memorandum integrates sports sector investments into that system. It is important to note that the US$521 billion figure does not serve as a target for Indonesia’s domestic sports industry size.
Thohir remarked that the global sports industry is valued at around US$521 billion, which is roughly equivalent to 8,000 trillion rupiah. He also pointed out that the sector experiences an annual growth rate of about 8%. In a separate comment, he estimated the worldwide sports tourism market at nearly US$600 billion. Indonesian officials have connected sports activities with events, tourism, and other commercial ventures. The August agreement provides a formal basis for the two ministries to coordinate investment strategies related to these sectors. It also defines areas where government agencies can collaborate on information sharing and licensing responsibilities.
Indonesia ties sports growth to licensing reforms
The cooperation is partly grounded in Government Regulation No. 28 of 2025, which establishes the legal basis for the partnership. This regulation governs risk-based business licensing and replaces a previous regulation from 2021. It sets deadlines for authorities processing applications via OSS and introduces a positive fictitious approval mechanism for eligible permits. Under this system, permits can be approved even if the responsible agency misses the deadline, provided applicants meet all conditions and procedures for the license they seek.
Roeslani noted that the investment ministry has issued over 250 permits using this positive fictitious approval mechanism. This figure encompasses the broader licensing system, not only sports-related enterprises. He emphasized that the government seeks clearer procedures for investors and businesses operating within the sports economy. The agreement also aims to foster the development of new investment opportunities and promote projects connected to sports, all within a shared framework managed by both ministries and Indonesia’s national licensing infrastructure.
Enhanced collaboration on sports investment and regulation
The memorandum further promotes workforce training and interoperability between government data systems. Officials stated that both ministries will coordinate compliance efforts through OSS and exchange licensing-related information. The arrangement delineates specific roles for each agency in managing sports-related investment matters, placing investment promotion alongside regulatory oversight and business services. The Ministry of Youth and Sports will contribute specialized sector information, while the investment ministry oversees the overall licensing and investment framework used across Indonesia.
Indonesia’s latest initiative in sports investment thus focuses on domestic regulation, licensing procedures, and interagency cooperation. The US$521 billion figure highlights the global sports market as cited by government officials but does not reflect Indonesia’s current sports economy value. The August 28 memorandum ties this international market context to Indonesia’s efforts to organize sports-related business activities under Regulation No. 28 of 2025. It now establishes a formal structure for investment development, licensing, and government coordination within the sector.