JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened collaboration between its investment and sports ministries to foster growth within the country’s sports sector. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding aimed at facilitating risk-based licensing and investment development in sports-related activities. The officials highlighted a global sports industry valued at approximately US$521 billion as the broader market context for this initiative.
This agreement unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports around streamlined business licensing, investment promotion, and service support for companies involved in sports sectors. The collaboration will leverage Indonesia’s Online Single Submission system, known as OSS, to coordinate efforts. It also encompasses compliance oversight, regulatory alignment, and data sharing. Importantly, this framework is designed to support investment growth in Indonesia’s sports industry rather than aiming for a domestic industry worth US$521 billion.
Thohir emphasized that the global sports sector is valued at about US$521 billion, roughly 8,000 trillion rupiah, with an annual growth rate of about 8%. He pointed out that this figure does not include sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials see both sports and sport tourism as vital economic sectors tied to events, travel, and ancillary services. The agreement establishes an administrative foundation to facilitate investments in these interconnected areas.
Licensing framework bolsters sports sector investments
The new licensing system is supported by Government Regulation No. 28 of 2025, which replaces a 2021 regulation and emphasizes risk-based licensing procedures. This regulation also enhances 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 a set timeframe. However, applicants must fulfill all necessary conditions and procedures before this mechanism is activated.
Since its implementation, Roeslani reported that the investment ministry has granted over 250 permits via this positive fictitious approval system. This total encompasses licensing activities beyond sports businesses alone. He further stated that the government aims to clarify licensing processes for companies and investors operating within the sports economy. Roeslani also pointed out that tourism and other industries related to sports are included in these sectors. The memorandum formalizes these licensing responsibilities within an interministerial coordination framework.
Enhanced government cooperation through the sports agreement
The memorandum also addresses workforce development and the interoperability of licensing data between the ministries. It covers investment opportunity development, promotion, and compliance monitoring via OSS. These initiatives link sports investment activities with Indonesia’s existing licensing infrastructure. Additionally, they establish a clear basis for information exchange and regulatory collaboration in sports-related business matters.
Indonesia’s recent sports investment agreement primarily focuses on licensing, investment facilitation, and interagency coordination. While the US$521 billion figure reflects the estimated global market size cited by officials, it does not denote Indonesia’s current sports economy. Instead, the government couples this market context with domestic licensing reforms introduced under Regulation No. 28 of 2025. The memorandum signed on August 28 formally consolidates cooperation on sports investment within this regulatory framework.