JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities to foster growth within its national sports sector. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the accord on August 28. The agreement emphasizes advancing investment development and implementing risk-based licensing procedures. It also integrates sports-related investment activities into Indonesia’s existing national licensing framework. Officials view this initiative as part of the global sports industry, which is valued at approximately US$521 billion.
The Ministry of Investment and Downstreaming along with the Ministry of Youth and Sports will work together on licensing, investment promotion, and business support services. Their cooperation extends to regulatory oversight, compliance checks, and sharing licensing data. Indonesia’s system uses the Online Single Submission platform, or OSS, to handle business permits within its risk-based model. The memorandum incorporates sports sector investments into this platform, although it does not specify a target of US$521 billion for Indonesia’s domestic sports industry.
Thohir highlighted that the global sports sector 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 worldwide sports tourism market at nearly US$600 billion. Indonesian officials associate sports activities with events, tourism, and commercial services, and the August agreement grants the two ministries formal authority to coordinate investments in these areas. It also clarifies where government agencies can share licensing duties and information.
Indonesia connects sports expansion with licensing reforms
The framework for this collaboration is supported by Government Regulation No. 28 of 2025, which governs risk-based licensing and replaced a 2021 regulation. It establishes service timelines for authorities processing applications through OSS and introduces a positive fictitious approval process for eligible permits. Under this system, permits can be approved if the responsible agency misses the deadline, provided applicants meet all conditions and procedures for the license.
Roeslani mentioned that the investment ministry has issued over 250 permits using the positive fictitious approval system. This figure pertains to the broader licensing system and not solely to sports companies. He emphasized that the government aims to streamline procedures for investors and businesses involved in sports. The agreement also promotes investment opportunities and project development linked to the sector, now managed within a shared framework between the ministries and Indonesia’s national licensing infrastructure.
Enhanced interagency cooperation on sports investment efforts
The memorandum includes provisions for workforce training and interoperability of government data systems. Officials indicated that the ministries will coordinate compliance checks via OSS and exchange licensing-related information. This arrangement assigns specific roles to each agency in managing sports investment matters, with investment promotion positioned alongside regulatory oversight and business services. The Ministry of Youth and Sports contributes sector-specific knowledge, while the investment ministry oversees the wider licensing and investment processes used nationwide.
Indonesia’s latest initiative to bolster sports investments focuses on domestic regulation, licensing procedures, and interministerial collaboration. The US$521 billion figure serves as a benchmark for the global industry cited by officials but does not reflect the current value of Indonesia’s sports economy. The August 28 memorandum links this international market context with Indonesia’s efforts to regulate sports-related business activities under Regulation No. 28 of 2025, establishing a formal structure for investment growth, licensing, and government cooperation across the sector.