JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new collaboration between its investment and sports agencies aimed at boosting commercial activities within the nation’s sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the memorandum of understanding. This agreement emphasizes investment promotion and risk-based licensing procedures, linking sports-related ventures with Indonesia’s existing licensing framework. The initiative is positioned within the context of a global sports industry valued at approximately US$521 billion.
Under the agreement, the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will work together on licensing, investment facilitation, and business support services. Their joint efforts extend to regulatory compliance, monitoring, and data sharing related to licensing activities. Indonesia’s online licensing platform, known as OSS, is a key tool in managing permits under its risk-based system, and this memorandum integrates sports sector investments into that process. However, it does not set a target of US$521 billion for Indonesia’s domestic sports industry size.
Thohir highlighted that the global sports industry is valued at around US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of about 8%. Additionally, he referenced the global sports tourism market, which is valued at nearly US$600 billion. Officials in Indonesia have connected sports activities with event hosting, tourism, and other commercial sectors. The agreement from August provides the two ministries with a formal foundation to coordinate investment initiatives related to these activities, while also defining shared responsibilities for information exchange and licensing management.
Indonesia links sports expansion with regulatory reform in licensing
The partnership is partly based on Government Regulation No. 28 of 2025, which lays the legal groundwork for this cooperation. This regulation governs risk-based business licensing, replacing a previous rule from 2021. It establishes deadlines for authorities processing applications via OSS and introduces a positive fictitious approval system for eligible permits, allowing approvals to be granted if authorities miss the deadline, provided applicants meet all conditions and procedures for the license.
Roeslani noted that the investment ministry has issued over 250 permits through this positive fictitious approval process. This figure encompasses the entire licensing system and is not limited to sports companies. He emphasized that the government seeks clearer procedures for investors and operators within the sports economy. The agreement also covers expanding investment opportunities and promoting projects within the sector. These responsibilities are now shared between the two ministries and Indonesia’s national licensing infrastructure.
Enhanced cooperation on sports-related investments and data sharing
The memorandum additionally addresses workforce training and interoperability between government data systems. Officials stated that the ministries will coordinate compliance oversight through OSS and exchange licensing-related information. The framework assigns specific roles for each agency in managing sports-related investments, with investment promotion integrated alongside regulatory coordination and business services. The Ministry of Youth and Sports will provide sector-specific insights, while the investment ministry oversees the broader licensing and investment procedures used nationwide.
Thus, Indonesia’s latest effort to develop its sports sector centers on domestic regulatory reforms, licensing processes, and interministerial collaboration. The US$521 billion figure acts as a benchmark for the global sports market, as cited by government officials, and does not reflect Indonesia’s current sports economy value. The August 28 memorandum ties this international market context to Indonesia’s initiatives for organizing sports-related business activities under Regulation No. 28 of 2025. It establishes a formal structure for investment development, licensing, and government coordination within the sector.