JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to promote investment 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. This agreement addresses risk-based licensing procedures and investment growth in sports-related activities. Officials highlighted the broader market potential by referencing the global sports industry valued at approximately US$521 billion.
The pact unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports around business licensing, investment promotion, and service facilitation for companies involved in sports sectors. These ministries will coordinate through Indonesia’s Online Single Submission system, known as OSS, ensuring collaboration on regulatory compliance, data sharing, and regulatory coordination. The framework is designed to support investment development within Indonesia’s sports sector, rather than setting a target for a US$521 billion domestic industry.
Thohir emphasized that the global sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He also noted that this figure does not include sport tourism, which he estimates at nearly US$600 billion worldwide. Indonesian officials see both sports and sports tourism as key areas for economic activity linked to events, travel, and supporting industries. The agreement establishes an administrative structure to facilitate investment activities within these sectors.
Licensing framework supports sports investment
The licensing system is governed by Government Regulation No. 28 of 2025, forming part of the new cooperation framework. This regulation governs risk-based business licensing and replaces the earlier regulation issued in 2021. It also enhances the enforcement of service deadlines within the OSS system. Under the positive fictitious approval mechanism, permits can be issued automatically when authorities do not respond within the designated timeframe, provided applicants meet all necessary conditions and procedures beforehand.
Roeslani stated that the investment ministry has issued over 250 permits through the positive fictitious approval mechanism since its implementation. This total encompasses the broader licensing system and is not limited solely to sports businesses. He added that the government aims to streamline licensing procedures for companies and investors involved in the sports economy. Roeslani further identified tourism and related industries as sectors connected to sporting activities. The memorandum formalizes these licensing responsibilities within an interministerial coordination framework.
Enhanced government cooperation on sports initiatives
The agreement also addresses workforce skills and the interoperability of licensing data between the ministries. Investment opportunity development and promotion are also included in the scope of the memorandum. Additionally, the ministries will work together to monitor business compliance via OSS, linking sports investment initiatives with Indonesia’s existing licensing infrastructure. This arrangement provides a clear basis for intergovernmental data exchange and regulatory management within the sports sector.
Indonesia’s latest sports investment agreement centers on licensing, investment facilitation, and interagency coordination. The US$521 billion figure reflects the estimated size of the global sports industry cited by Indonesian officials, not the current domestic industry size. The government’s approach combines this global industry perspective with domestic licensing reforms introduced under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes cooperation on sports investment within this regulatory framework.