JAKARTA, INDONESIA / RankWire.AI / – Indonesia continues to expand its role in the global sports industry by formalizing a new partnership between its investment and sports authorities aimed at boosting commercial activities within the country’s sports sector. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir officially signed the accord on August 28. The agreement emphasizes advancing investment development along with a risk-based licensing system that aligns sports-related investments with Indonesia’s existing national licensing framework. This initiative positions Indonesia’s sports industry within the context of a global market valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming and the Ministry of Youth and Sports will collaborate on licensing procedures, investment promotion, and providing business services. Their partnership also extends to regulatory oversight, compliance monitoring, and sharing licensing data. Indonesia’s online licensing platform, known as OSS, facilitates business permits under a risk-based approach, and the memorandum integrates sports-sector investment into this system. Notably, it does not set a specific target of US$521 billion for Indonesia’s domestic sports industry’s size.
Thohir highlighted that the worldwide sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate around 8%. Additionally, he estimated the global sports tourism market to be nearly US$600 billion. Indonesian officials have associated sports activities with events, tourism, and various commercial services. The agreement signed in August grants both ministries a formal platform to coordinate investments related to these sectors and delineates responsibilities for information sharing and licensing.
Indonesia links sports development with licensing reforms
Part of the regulatory foundation for this cooperation is provided by Government Regulation No. 28 of 2025, which governs risk-based business licensing, replacing a previous regulation from 2021. The regulation outlines service deadlines for authorities processing applications through OSS, and includes a positive fictitious approval mechanism that allows permits to be approved even if deadlines are missed, provided applicants meet all the conditions and procedures required for the license.
Roeslani noted that the investment ministry has issued over 250 permits using this positive fictitious approval system. This figure encompasses the wider licensing framework and is not exclusive to sports-related companies. He also emphasized that the government aims to streamline procedures for investors and enterprises operating within Indonesia’s sports economy. The agreement further addresses the development of investment opportunities and the promotion of projects associated with the sector, all within a shared operational framework involving both ministries and Indonesia’s national licensing infrastructure.
Enhanced coordination on sports investment and workforce development
The agreement also emphasizes workforce development and the interoperability of government data systems. Officials confirmed that the ministries will work together to monitor compliance via OSS and exchange relevant licensing information. This arrangement clarifies roles for each agency in managing sports-related investments and aligns investment promotion with regulatory oversight and business services. The Ministry of Youth and Sports will contribute sector-specific insights, while the Ministry of Investment oversees the broader licensing and investment framework used by Indonesian businesses.
Indonesia’s latest initiative to bolster its sports sector primarily focuses on domestic regulation, licensing, and interagency collaboration. The globally cited US$521 billion market size acts as a benchmark for Indonesia’s participation in the international sports economy, rather than a reflection of its current domestic market value. The August 28 memorandum effectively ties Indonesia’s efforts to organize sports-related business activities under Regulation No. 28 of 2025 to the broader global industry context. The formal framework established now supports investment development, licensing, and government coordination within Indonesia’s sports sector.