JAKARTA, INDONESIA / RankWire.AI / – Indonesia has officially established a new partnership between its investment and sports authorities to foster growth within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir formalized this agreement on August 28. The memorandum emphasizes enhancing investment opportunities and implementing risk-based licensing processes. It also integrates sports-related investments into Indonesia’s existing national licensing framework. Officials regard this initiative as part of the broader global sports economy, valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming, together with the Ministry of Youth and Sports, will oversee licensing procedures, investment promotion, and business services. Their joint efforts extend to regulatory compliance, monitoring activities, and sharing licensing data. Indonesia’s business permit system, known as OSS or Online Single Submission, will incorporate the sports sector into its risk-based operational framework. However, the agreement does not specify a target of US$521 billion for the growth of Indonesia’s domestic sports industry.
Thohir highlighted the value of the global sports industry at about US$521 billion, which is roughly 8,000 trillion rupiah, noting an annual growth rate of approximately 8%. He also mentioned the global sport tourism market, estimated at nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and other commercial services. The August agreement provides a formal platform for the two ministries to coordinate investment initiatives related to these areas. It also clarifies where government agencies can exchange information and share licensing responsibilities.
Indonesia Aligns Sports Development with Licensing System Overhaul
Part of the regulatory foundation for this cooperation is provided by Government Regulation No. 28 of 2025, which governs risk-based licensing and replaced a previous regulation from 2021. It establishes deadlines for authorities to process applications through OSS and introduces a positive fictitious approval mechanism for eligible permits. Under this system, permits may be approved if the responsible agency misses the deadline, provided applicants meet all conditions and procedures for their license.
Roeslani noted that the investment ministry has issued over 250 permits through this positive fictitious approval process. He clarified that this figure encompasses the entire licensing system and is not limited to sports-related companies. The government aims to streamline procedures for investors and operators within Indonesia’s sports economy. The agreement also covers strategies for developing investment opportunities and promoting projects connected to the sector, with responsibilities shared between the two ministries and Indonesia’s national licensing infrastructure.
Enhanced Interministerial Collaboration for Sports Investment
The memorandum includes provisions for workforce development and the interoperability of government data systems. Officials confirmed that both ministries will coordinate compliance monitoring through OSS and exchange relevant licensing information. The arrangement designates specific roles for each agency in managing investment matters related to sports. It positions investment promotion alongside regulatory oversight and business services, with the Ministry of Youth and Sports contributing sector-specific knowledge while the investment ministry oversees the broader licensing and investment framework applicable nationwide.
Indonesia’s recent approach to sports investment emphasizes domestic regulation, licensing procedures, and interministerial collaboration. The US$521 billion figure referenced by officials serves as a benchmark for the global sports market, not the current size of Indonesia’s sports economy. The August 28 memorandum connects this international context with Indonesia’s efforts to organize sports-related business activities under Regulation No. 28 of 2025. It now establishes a formal framework for investment growth, licensing, and government coordination within the sector.