JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new collaboration between its investment and sports authorities aimed at fostering expanded commercial activity within the national sports industry. This agreement, signed on August 28 by Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir, emphasizes development in investment and the implementation of risk-based licensing processes, integrating sports investment with Indonesia’s existing national licensing framework. The initiative is contextualized within the broader global sports market, valued at approximately US$521 billion, according to officials.
The Ministry of Investment and Downstreaming along with the Ministry of Youth and Sports will oversee licensing procedures, promote investments, and facilitate business services; their cooperation also extends to regulatory oversight, compliance checks, and sharing licensing data, with Indonesia currently utilizing the Online Single Submission system, or OSS, to process business permits under its risk-based approach. This memorandum incorporates sports sector investments into this system, although it does not specify US$521 billion as a target size for Indonesia’s domestic sports industry.
Thohir highlighted the importance of the global sports market, estimating its worth at about US$521 billion, roughly 8,000 trillion rupiah, and noted an annual growth rate of about 8%. He also referenced the international sport tourism sector, valued at nearly US$600 billion. Indonesian officials have associated sports activities with events, tourism, and other commercial services, and the recent agreement grants the two ministries a formal platform for coordinating investment efforts related to these areas. It also delineates the sharing of information and licensing responsibilities among government bodies.
Indonesia Connects Sports Expansion with Licensing Reforms
Part of the regulatory foundation underpinning this cooperation is Government Regulation No. 28 of 2025, which governs risk-based business licensing, replacing a previous regulation from 2021, and establishing service deadlines for authorities processing applications via OSS. The regulation also introduces a positive fictitious approval mechanism, allowing permits to be approved even if deadlines are missed, provided applicants meet all conditions and procedures for their license. Roeslani explained that the investment ministry has issued more than 250 permits through this system, although this figure encompasses the wider licensing framework and is not limited to sports companies. He further stated that the government aims to create more transparent procedures for investors and businesses involved in the sports economy, with the agreement also fostering the development of investment opportunities and the promotion of projects connected to the sector, now managed within a shared framework involving both ministries and Indonesia’s national licensing infrastructure.
Enhanced Interagency Collaboration on Sports Investment
The memorandum additionally emphasizes workforce development and the interoperability of government data systems, with officials confirming that the ministries will coordinate compliance monitoring through OSS and exchange licensing-related information. This arrangement clearly assigns roles to each agency in managing sports-related investments and aligns investment promotion efforts with regulatory oversight and business services. The Ministry of Youth and Sports will contribute sector-specific insights, while the Ministry of Investment handles the broader licensing and investment framework applicable across Indonesia. As a result, Indonesia’s latest sports investment initiative centers on domestic regulation, licensing processes, and enhanced interministerial cooperation; the US$521 billion figure is referenced as a benchmark from the global sports industry cited by officials, but it does not reflect Indonesia’s current sports economy value. The August 28 memorandum links the international market context with Indonesia’s strategic efforts to organize sports-related commercial activities under Regulation No. 28 of 2025, establishing a formal structure for investment growth, licensing, and government collaboration across the sector.