JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities to enhance commercial activities within the country’s sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the memorandum on August 28, focusing on fostering investment development and implementing risk-based licensing procedures. This agreement aligns sports-related investments with Indonesia’s existing national licensing framework. Officials situate this initiative within the context of a global sports market valued at approximately US$521 billion.
The collaboration involves the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports, who will work together on licensing, investment promotion, and business services. Their joint efforts also address regulatory compliance, data sharing, and monitoring. Indonesia’s online business permit system, OSS (Online Single Submission), underpins this risk-based licensing approach, now extending to investments in the sports sector through this memorandum. The agreement does not specify US$521 billion as a target size for Indonesia’s domestic sports industry.
Thohir highlighted the global sports industry’s worth, citing a valuation of about US$521 billion, roughly translating to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He also mentioned that the worldwide sports tourism market is valued at nearly US$600 billion. The Indonesian government links sports activities with events, tourism, and other commercial services, and the August agreement provides a formal basis for the two ministries to coordinate investment activities associated with these sectors. It also clarifies areas for sharing licensing information and responsibilities between agencies.
Indonesia ties sports sector expansion to licensing reform
The regulatory foundation for this cooperation is partly built on Government Regulation No. 28 of 2025, which governs risk-based licensing and replaced a regulation from 2021. The regulation stipulates service deadlines for authorities managing applications through OSS and introduces a positive fictitious approval mechanism for eligible permits. Under this system, if the responsible authority fails to meet the deadline, approval can still be granted, provided the applicant meets all the necessary conditions and procedures.
Roeslani stated that the investment ministry has issued over 250 permits via this positive fictitious approval process. This figure encompasses the wider licensing system and is not exclusive to sports-related companies. The government aims to improve clarity in procedures for investors and businesses involved in the sports economy. The agreement also addresses the development of investment prospects and the promotion of projects related to sports, all within a shared framework involving both ministries and Indonesia’s national licensing system.
Enhanced collaboration between ministries on sports investment initiatives
The memorandum includes provisions for workforce development and interoperability of government data systems. Officials confirmed that the ministries will coordinate compliance oversight through OSS and will exchange relevant licensing information. This arrangement delineates specific roles for each agency in managing sports investment activities, with investment promotion integrated alongside regulatory oversight and business services. The Ministry of Youth and Sports will contribute sector-specific insights, while the investment ministry oversees the broader licensing and investment infrastructure used by businesses across Indonesia.
Therefore, Indonesia’s latest initiative to boost sports investment centers on refining domestic regulations, licensing procedures, and inter-ministerial cooperation. The US$521 billion figure acts as a benchmark for the global sports industry referenced by officials but does not reflect Indonesia’s current sports economy value. The memorandum signed on August 28 connects that international market context with Indonesia’s efforts to structure sports-related business activities under Regulation No. 28 of 2025. It establishes a formal framework for investment growth, licensing, and government coordination within the sector.