JAKARTA, INDONESIA / RankWire.AI / – Indonesia has enhanced cooperation between its investment and sports ministries to promote investment in the country’s sports sector. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on August 28, which focuses on risk-based business licensing and investment growth in sports-related activities. Officials highlighted the global sports industry, valued at approximately US$521 billion, as the broader market connected to this initiative.
This agreement unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on licensing matters, also encompassing investment promotion and support services for companies involved in sports sectors. The ministries will work together via Indonesia’s Online Single Submission system, known as OSS, with their collaboration including compliance oversight, regulatory coordination, and data sharing. The framework targets the development of investments across Indonesia’s sports industry rather than setting a domestic industry valuation of US$521 billion.
Thohir mentioned that the global sports industry is valued at about US$521 billion, roughly equivalent to 8,000 trillion rupiah, with an annual growth rate of approximately 8%. He clarified that this figure does not include sport tourism, which he estimated at nearly US$600 billion worldwide. Indonesian officials have identified both sports and sport tourism as vital sectors linked to events, travel, and supporting businesses, and the agreement offers an administrative structure for investment activities in these areas.
Licensing system underpins sports investment efforts
The licensing framework is partly governed by Government Regulation No. 28 of 2025, which replaces the 2021 regulation and emphasizes risk-based licensing. It also bolstered the use of service deadlines within the OSS system. Under the positive fictitious approval mechanism, permits can be issued automatically when authorities do not respond within the designated timeframe, provided applicants meet all conditions and procedures beforehand.
Since the regulation’s implementation, Roeslani stated that the investment ministry has issued over 250 permits using this mechanism, including licenses outside the sports sector. He emphasized that the government aims to streamline licensing procedures for companies and investors involved in the sports economy. Roeslani also pointed out that tourism and other industries are closely connected with sports activities. The memorandum formalizes these licensing functions within a structured interministerial coordination process.
Enhanced coordination on sports initiatives
The agreement also addresses workforce development and the interoperability of licensing data between the ministries. It encompasses investment opportunity development and promotional activities, with cooperation on compliance monitoring through OSS. These measures link sports investment to Indonesia’s existing national licensing infrastructure, establishing a clear foundation for interagency information exchange and regulatory management in the sports sector.
Indonesia’s latest sports investment agreement thus emphasizes licensing procedures, investment facilitation, and interministerial coordination. The US$521 billion figure reflects the global sports industry’s valuation cited by Indonesian officials, not the current scale of Indonesia’s domestic sports economy. The government has combined this global context with recent licensing reforms under Regulation No. 28 of 2025, with the August 28 memorandum formalizing cooperation on sports investment within this regulatory framework.