JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at boosting commercial activities within the country’s sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the agreement. The memorandum emphasizes advancing investment opportunities and establishing a risk-based licensing framework, connecting sports-related investments with Indonesia’s current national licensing system. Officials highlighted that this initiative aligns with the global sports sector, which is valued at approximately US$521 billion.
The cooperation involves the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports working together on licensing, investment promotion, and business support services. Their partnership also encompasses regulatory oversight, compliance tracking, and the sharing of licensing data. Indonesia’s business permit process is managed through the Online Single Submission system, known as OSS, under its risk-based regulatory approach. The memorandum integrates sports sector investments into this existing system, although it does not specify a target of US$521 billion for the size of Indonesia’s domestic sports industry.
Thohir mentioned that the global sports industry is valued at around US$521 billion, equating to roughly 8,000 trillion rupiah. He noted the sector’s annual growth rate of about 8%. Additionally, he cited the worldwide sport tourism market, which is valued at nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and various commercial services. The signed agreement on August 28 establishes a formal basis for the two ministries to coordinate investments related to these activities, outlining areas for data sharing and licensing responsibilities among government agencies.
Indonesia ties sports expansion to licensing reforms
Part of the regulatory foundation for this cooperation is provided by Government Regulation No. 28 of 2025, which governs risk-based business licensing and replaced an earlier regulation from 2021. This regulation sets deadlines for authorities processing applications via OSS and introduces a positive fictitious approval system for eligible permits. Under this approach, approval can proceed if the responsible agency misses the deadline, though applicants must still fulfill all conditions and procedures for their license.
Roeslani revealed that the investment ministry has issued over 250 permits through the positive fictitious approval mechanism. This figure encompasses the entire licensing system and is not limited to sports enterprises. He emphasized the government’s desire for clearer procedures to support investors and businesses operating within the sports sector. The agreement also encompasses investment development and project promotion linked to the industry. These responsibilities now operate within a shared framework between the two ministries and Indonesia’s national licensing infrastructure.
Coordination between ministries expands on sports investment activities
The memorandum also promotes workforce training and ensures interoperability among government data systems. Officials said that both ministries will coordinate compliance monitoring through OSS and share relevant licensing information. This arrangement clearly defines each agency’s roles concerning sports-related investments. It also integrates investment promotion activities with regulatory oversight and business support functions. The Ministry of Youth and Sports will contribute sector-specific data, while the investment ministry oversees broader licensing and investment processes applicable across Indonesia.
Thus, Indonesia’s latest effort to promote sports investment focuses on domestic regulation, licensing procedures, and inter-agency collaboration. The US$521 billion figure serves as a benchmark for the global sports industry cited by officials, not as an indicator of Indonesia’s current sports economy. The August 28 memorandum links this international market context to Indonesia’s initiatives to streamline sports-related business activities under Regulation No. 28 of 2025. It now establishes a formal structure for investment growth, licensing, and government coordination within the sector.