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 signed the accord on August 28. The agreement emphasizes developing investment opportunities and implementing risk-based business licensing procedures. It also integrates sports-related investments into Indonesia’s existing licensing framework. Officials described the initiative as part of a global sports industry valued at approximately US$521 billion.
In Jakarta, the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will oversee licensing, investment promotion, and business services. Their collaboration also encompasses regulatory compliance, monitoring procedures, and the sharing of licensing data. Indonesia employs the Online Single Submission system, or OSS, to process business permits under its risk-based approach. This memorandum introduces sports sector investments into that system. It is important to note that the US$521 billion figure does not set a target for Indonesia’s domestic sports industry size.
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%. Furthermore, he estimated the worldwide sport tourism market at nearly US$600 billion. Indonesian officials have linked the sports sector to events, tourism, and other commercial services. The August agreement provides a formal basis for the two ministries to coordinate investment activities related to these areas. It also clarifies where government agencies can share information and licensing responsibilities.
Indonesia ties sports development to licensing reforms
The foundation for this cooperation is partly established by Government Regulation No. 28 of 2025, which supports risk-based business licensing and replaced a previous regulation from 2021. This regulation sets deadlines for authorities processing applications through OSS. It also introduces a positive fictitious approval system, allowing permits to be approved automatically if responsible agencies miss deadlines, provided applicants meet all conditions and procedures for their licenses.
Roeslani reported that the investment ministry has issued over 250 permits using this positive fictitious approval mechanism. The figure includes licenses beyond sports companies and covers the broader licensing system. He stressed the government’s aim to improve procedures for investors and businesses operating within Indonesia’s sports economy. The agreement further facilitates the development of investment opportunities and the promotion of projects linked to the sports sector. These responsibilities are now managed within a shared framework between the two ministries and Indonesia’s national licensing system.
Enhanced interministerial cooperation on sports investment initiatives
The agreement also addresses workforce development and interoperability among government data systems. Officials indicated that the ministries will coordinate compliance monitoring through OSS and exchange licensing-relevant information. This arrangement assigns specific roles to each agency in managing sports-related investments. Additionally, it aligns investment promotion efforts with regulatory and business service coordination. The Ministry of Youth and Sports will provide sector-specific insights, while the Ministry of Investment will oversee the broader licensing and investment framework applicable nationwide.
Thus, Indonesia’s current push for sports investment emphasizes strengthening domestic regulation, licensing procedures, and interagency cooperation. The US$521 billion estimate reflects the size of the global sports industry mentioned by officials, not the current value of Indonesia’s sports economy. The August 28 memorandum links this international market context with Indonesia’s strategic approach to organizing sports-related commercial activities under Regulation No. 28 of 2025. The agreement now establishes a formal platform for investment growth, licensing, and government coordination within the sports sector.