JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to foster growth in the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28. The agreement focuses on risk-based business licensing and investment development in sports-related activities. Officials highlighted the global sports industry, valued at about US$521 billion, as the broader market connected to this initiative.
This agreement links the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on licensing. It also promotes investment and provides services for companies in sports sectors. The ministries will work together through Indonesia’s Online Single Submission system, known as OSS. Their cooperation involves regulatory oversight, compliance checks, and data sharing. The framework aims to develop investment in Indonesia’s sports industry rather than set a domestic market target of US$521 billion.
Thohir noted that the global sports industry is worth around US$521 billion, or roughly 8,000 trillion rupiah. He mentioned it grows by about 8% each year. This figure excludes sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials see both sports and sport tourism as sectors linked to events, travel, and supporting businesses. The agreement offers an administrative structure for investment activities in these areas.
Licensing system supports growth in sports investments
The licensing framework is part of Government Regulation No. 28 of 2025. It governs risk-based business licensing and replaced an earlier regulation from 2021. The regulation also enhanced the use of service deadlines within the OSS system. Under the positive fictitious approval process, the system can issue permits when authorities do not act within set timeframes. Applicants must meet all conditions and procedures before this mechanism is used.
Roeslani stated that the investment ministry has issued more than 250 permits through this process since it was introduced. These permits cover the wider licensing system, not just sports businesses. He emphasized that the government aims for clearer licensing procedures for companies and investors in the sports economy. Roeslani added that tourism and other industries related to sports are also included. The memorandum formalizes these licensing functions within a structured interministerial coordination process.
Enhanced government cooperation in sports sector development
The agreement also addresses workforce skills and the sharing of licensing data between the ministries. It includes provisions for developing investment opportunities and promoting investments. The ministries will also coordinate compliance monitoring through OSS. These steps link sports investment with Indonesia’s existing national licensing system. They also establish a clear framework for information exchange and regulatory management related to sports-sector businesses.
Indonesia’s latest sports investment agreement emphasizes licensing, investment facilitation, and coordination between the two government agencies. The US$521 billion figure reflects the global sports industry’s estimated value, not Indonesia’s current market size. The government has combined this global context with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes cooperation on sports investment within this regulatory framework.