JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at boosting commercial activities within the national 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 investment growth and introduces a risk-based licensing system for sports-related businesses. Additionally, it integrates sports investment into Indonesia’s existing national licensing platform. Officials highlighted that this initiative aligns with the global sports industry 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 collaboration also encompasses regulatory oversight, compliance checks, and the sharing of licensing information. Indonesia’s business permits are processed through the Online Single Submission system, known as OSS, which operates on a risk-based approach. This memorandum incorporates sports sector investment into that framework. It does not set a target of US$521 billion for Indonesia’s domestic sports market.
Thohir highlighted that the global sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He also mentioned that the worldwide sports tourism market is estimated at nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and various commercial services. The August agreement provides a formal basis for the two ministries to coordinate investments related to these areas. It also defines how government agencies can share information and licensing responsibilities.
Indonesia Connects Sports Expansion with Licensing Overhaul
The regulatory foundation for this collaboration is partly derived from Government Regulation No. 28 of 2025, which governs risk-based business licensing, replacing a previous regulation from 2021. This regulation establishes service deadlines for authorities processing applications via OSS and introduces a positive fictitious approval system for eligible permits. Under this mechanism, permits can be approved automatically if the responsible agency fails to meet the deadline, provided applicants meet all conditions and procedures for their licenses.
Roeslani stated that the investment ministry has issued over 250 permits utilizing the positive fictitious approval process. This figure encompasses the entire licensing system and is not limited to sports companies. The government aims to streamline procedures for investors and businesses operating within the sports industry. The agreement also involves developing investment opportunities and promoting projects within the sector. These activities are now managed through a shared framework involving both ministries and Indonesia’s national licensing infrastructure.
Enhanced Coordination Between Ministries on Sports Investment Efforts
The memorandum also emphasizes workforce training and interoperability between government data systems. Officials explained that the ministries will work together on compliance oversight via OSS and exchange licensing-related information. This arrangement assigns specific roles to each agency in managing sports-related investment matters, with investment promotion integrated alongside regulatory oversight and business support services. The Ministry of Youth and Sports will contribute sector-specific insights, while the investment ministry oversees the broader licensing and investment framework used across Indonesia.
Consequently, Indonesia’s latest initiative to promote sports investment centers on domestic regulation, licensing procedures, and inter-agency collaboration. The US$521 billion figure acts as a benchmark for the global sports industry cited by government officials, not as an indicator of Indonesia’s current sports economy value. The August 28 memorandum links this international industry context with Indonesia’s efforts to structure sports-related business activities under Regulation No. 28 of 2025. It establishes a formal platform for investment development, licensing, and governmental coordination in the sector.