JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened the collaboration between its investment and sports authorities to promote investment in the country’s sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28, establishing a joint framework. This agreement focuses on implementing risk-based licensing for businesses and facilitating investment growth in sports-related activities. Officials highlighted the significance of the broader global sports industry, which they estimate to be worth approximately US$521 billion, as the context for this initiative.
The newly formed agreement unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports to streamline business licensing processes. It also aims to encourage investments and provide enhanced services for companies engaged in sports sectors. Coordination will be carried out through Indonesia’s Online Single Submission system, known as OSS, which will oversee compliance checks, regulatory coordination, and data sharing efforts. The framework’s scope pertains to fostering investment development within Indonesia’s sports industry rather than setting a goal to build a US$521 billion domestic market.
Thohir pointed out that the global sports industry has an estimated valuation of about US$521 billion, roughly equivalent to 8,000 trillion rupiah. He noted that the industry experiences an annual growth rate of approximately 8%. This figure does not include sport tourism, which he values at nearly US$600 billion globally. Indonesian officials have recognized both sports and sport tourism as key areas linked to economic activities such as events, travel, and supporting enterprises. The agreement introduces an administrative framework to facilitate investment activities within these sectors.
Licensing infrastructure bolsters sports investment initiatives
The new licensing framework is anchored in Government Regulation No. 28 of 2025, which forms part of the overarching regulatory scheme. This regulation replaces the previous rules issued in 2021 and emphasizes risk-based licensing procedures. It also enhances the effectiveness of service deadlines within the OSS platform. Under the positive fictitious approval system, permits can be granted automatically if authorities do not respond within established timeframes, provided applicants meet all procedural and eligibility requirements.
Roeslani indicated that since the regulation’s implementation, the investment ministry has issued over 250 permits using the positive fictitious approval mechanism. This total includes licenses beyond the sports sector, covering the broader licensing system. He emphasized that the government is seeking clearer and more streamlined licensing procedures for companies and investors operating within the sports economy. Roeslani also pointed out that tourism and other industries closely linked to sports activities are part of this initiative. The memorandum formalizes these licensing functions into a structured interministerial coordination process.
Enhanced governmental coordination broadens sports sector development
The agreement also addresses workforce development and the interoperability of licensing data between the two ministries. It encompasses investment opportunity development and promotion as key focus areas. Both ministries will work together to monitor business compliance through the OSS system, connecting sports investment policies with Indonesia’s existing licensing infrastructure. This framework provides a clear foundation for information exchange and regulatory management related to sports business activities.
In summary, Indonesia’s latest sports investment agreement emphasizes licensing reform, investment facilitation, and interagency cooperation. The US$521 billion figure cited by officials refers to the global industry valuation, not the current size of Indonesia’s domestic sports economy. The government’s initiative combines this international context with domestic licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 solidifies the country’s commitment to advancing sports investment within this regulatory framework.