JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities aimed at boosting commercial activities within the national sports industry. The agreement was signed on August 28 by Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir. Its primary focus is on fostering investment growth and implementing risk-based licensing processes for businesses. Furthermore, it integrates sports-related investments into Indonesia’s existing licensing framework, which aligns with the global sports industry valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will collaborate on licensing procedures, investment promotion efforts, and business support services. Their joint efforts also extend to regulatory compliance, monitoring adherence to rules, and sharing licensing data. Indonesia operates the Online Single Submission system, or OSS, to facilitate business permits under a risk-based approach. This memorandum incorporates the sports sector into that system. It does not, however, set a specific target of US$521 billion for Indonesia’s domestic sports market.
Thohir highlighted that the global sports industry is valued at about US$521 billion, equivalent to roughly 8,000 trillion rupiah. He also mentioned an annual growth rate of around 8% for this sector. Additionally, he estimated the worldwide sport tourism market at nearly US$600 billion. Indonesian officials have linked sports activities with events, tourism, and other commercial enterprises. The agreement signed in August provides a formal foundation for the two ministries to coordinate investment strategies related to these areas. It also clarifies where government agencies can share data and responsibilities concerning licensing.
Indonesia connects sports sector expansion with licensing reforms
Regulation No. 28 of 2025 offers part of the legal basis for this cooperation. This regulation governs risk-based licensing procedures and replaced an earlier regulation from 2021. It establishes deadlines for authorities processing applications through OSS, and introduces a positive fictitious approval system for permits deemed eligible. Under this mechanism, permits can be approved if the responsible agency fails to meet the deadline, provided applicants meet all conditions and procedures required for the license.
Roeslani noted that the investment ministry has granted over 250 permits via the positive fictitious approval process. This figure includes permits across the entire licensing system and is not limited solely to sports-related companies. He emphasized that the government aims to improve clarity and efficiency for investors and operators in the sports industry. The agreement also addresses the development of investment opportunities and the promotion of projects connected to the sector. These functions now operate within a shared framework between the two ministries and Indonesia’s national licensing infrastructure.
Enhanced interagency collaboration in sports investment promotion
The memorandum incorporates workforce development initiatives and aims to improve interoperability between government data systems. Officials stated that the ministries will work together to oversee compliance through OSS and share licensing-related information. The framework assigns specific responsibilities to each agency regarding sports investment matters, linking investment promotion with regulatory oversight and business services. The Ministry of Youth and Sports will contribute sector-specific insights, while the investment ministry manages the broader licensing and investment procedures applicable across Indonesia.
This latest Indonesian initiative in sports investment focuses on strengthening domestic regulation, licensing processes, and inter-ministerial coordination. While the global industry valuation of US$521 billion serves as a benchmark cited by officials, it does not reflect Indonesia’s current sports economy size. The August 28 memorandum links this international market estimate to Indonesia’s efforts to organize sports-related business activities under Regulation No. 28 of 2025. The agreement establishes a formal structure to support investment development, licensing procedures, and government cooperation within the sector.