JAKARTA, INDONESIA / RankWire.AI / – Indonesia has enhanced collaboration between its investment and sports ministries to foster growth in the national sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding. This agreement addresses risk-based business licensing procedures and investment promotion across various sports-related sectors. Officials pointed to the global sports market valued at approximately US$521 billion as the broader context for this initiative.
The memorandum links the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports regarding business licensing. It also establishes protocols for promoting investments and providing services to companies involved in sports-related activities. The two ministries will work together via Indonesia’s Online Single Submission system, known as OSS, to streamline processes. Their cooperation extends to monitoring regulatory compliance, coordinating policies, and sharing data. This framework is intended to support investment expansion within Indonesia’s sports sector, rather than setting a domestic industry target of US$521 billion.
Thohir highlighted the global sports industry’s valuation at around US$521 billion, roughly equivalent to 8,000 trillion rupiah, noting an annual growth rate of about 8%. This figure excludes sport tourism, which he estimated to be nearly US$600 billion worldwide. Indonesian officials have identified both sports and sport tourism as key areas linked to events, travel, and supporting businesses. The agreement provides a formal administrative structure to facilitate investment activities in these sectors.
Licensing framework aims to support sports-related investments
The licensing system is governed by Government Regulation No. 28 of 2025, which is part of the new framework supporting cooperation. This regulation oversees risk-based business licensing and replaced an earlier regulation issued in 2021. It also reinforced the enforcement of service deadlines within the OSS platform. Under the positive fictitious approval mechanism, permits can be issued automatically if authorities do not respond within specified timeframes. Applicants are still required to meet all conditions and procedures before this mechanism is activated.
Since the regulation’s implementation, Roeslani stated that the investment ministry has granted over 250 permits via the positive fictitious approval mechanism. This total includes licenses beyond sports businesses, covering the broader licensing system. He emphasized that the government aims to clarify licensing procedures for companies and investors within the sports economy. Additionally, Roeslani pointed out that tourism and other industries connected to sports are among the sectors affected. The memorandum establishes a formal interministerial framework to coordinate licensing activities in these areas.
Enhanced government coordination under the sports investment agreement
The memorandum also addresses workforce development and the interoperability of licensing data between the two ministries. It covers investment opportunity development, investment promotion, and monitoring business compliance through OSS. These initiatives link sports investment to Indonesia’s existing national licensing infrastructure, providing a clear basis for information exchange and regulatory management related to sports-sector enterprises.
Thus, Indonesia’s latest sports investment agreement emphasizes licensing procedures, investment facilitation, and interministerial coordination. The US$521 billion figure mentioned by officials reflects the estimated worth of the global sports industry, not the current size of Indonesia’s domestic sports economy. The government’s approach combines this global market perspective with recent licensing reforms under Regulation No. 28 of 2025. The memorandum signed on August 28 formalizes cooperation within this regulatory framework to promote sports investment.