JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new collaboration between its investment and sports authorities aimed at boosting commercial activities within the country’s sports sector. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir officially signed the agreement on August 28. The memorandum centers on fostering investment development and implementing a risk-based approach to business licensing, aligning sports-related investments with Indonesia’s existing licensing system. Officials emphasized that this initiative places Indonesia within the global sports industry, which is currently valued at approximately US$521 billion.
Under this new arrangement, the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will work together on licensing procedures, investment promotion, and providing business services. Their joint efforts extend to regulatory oversight, ensuring compliance, and facilitating the exchange of licensing data. Indonesia’s use of the Online Single Submission system, known as OSS, allows for streamlined processing of business permits within its risk-based framework. The memorandum integrates investments in the sports sector into this digital structure. It is important to note that the agreement does not set a target of US$521 billion for Indonesia’s domestic sports industry’s size.
Thohir highlighted that the global sports industry’s worth is around US$521 billion, roughly equivalent to 8,000 trillion rupiah, and it is experiencing an annual growth rate of approximately 8%. He also pointed out that the worldwide sports tourism market is valued at nearly US$600 billion. Indonesian officials have linked sports activities with large-scale events, tourism development, and various commercial services. The August agreement provides a formal platform for the two ministries to coordinate investments linked to these activities, establishing clear channels for information sharing and licensing responsibilities between government agencies.
Indonesia Connects Sports Sector Expansion with Licensing Reforms
The legal framework supporting this cooperation is partly derived from Government Regulation No. 28 of 2025, which underpins the risk-based licensing system. This regulation, replacing a 2021 rule, sets out deadlines for authorities handling applications via OSS and introduces a positive fictitious approval process for qualifying permits. This system allows permits to be approved automatically when the responsible agency misses the deadline, provided applicants meet all other conditions and procedures for the license they seek.
Roeslani explained that over 250 permits have been issued through this positive fictitious approval mechanism, though this figure encompasses the entire licensing system and is not exclusive to sports companies. The government aims to create more transparent procedures for investors and businesses operating within the sports sector. The agreement also emphasizes the development of investment opportunities and the promotion of projects connected to sports, integrating these efforts into a shared framework managed jointly by the two ministries and Indonesia’s broader licensing infrastructure.
Enhanced Coordination Between Ministries for Sports Investment Growth
The memorandum further emphasizes workforce development and interoperability between government data systems. Authorities stated that both ministries will coordinate their compliance monitoring efforts through OSS and share relevant licensing information. This arrangement assigns specific roles to each agency in managing sports-related investments, aligning regulatory oversight with investment promotion and business facilitation. The Ministry of Youth and Sports will provide sector-specific insights, while the Ministry of Investment will oversee the overall licensing and investment framework utilized by businesses across Indonesia.
In summary, Indonesia’s latest move to bolster sports investment is rooted in improving domestic regulation, licensing procedures, and intergovernmental collaboration. The US$521 billion figure acts as a benchmark for the global sports industry cited by officials, but does not reflect the current size of Indonesia’s sports economy. The August 28 memorandum ties this international market perspective to Indonesia’s strategic effort to organize sports-related business activities under Regulation No. 28 of 2025. The formal agreement now provides a structured foundation for investment growth, licensing, and governmental coordination within the sector.