JAKARTA, INDONESIA / RankWire.AI / – Indonesia has formalized a new partnership between its investment and sports authorities to promote business development within the national sports industry. On August 28, Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding aimed at fostering investment growth and implementing risk-based licensing procedures. This agreement integrates sports-related investments into Indonesia’s current licensing system and positions the effort within the context of the global sports industry valued at around US$521 billion.
The Ministry of Investment and Downstreaming together with the Ministry of Youth and Sports will oversee licensing, investment promotion, and business support services. Their collaborative scope also encompasses regulatory oversight, compliance checks, and the exchange of licensing data. Indonesia’s business permit processing is conducted via the Online Single Submission system, or OSS, which operates under a risk-based approach. The memorandum incorporates sports sector investments into this system, though it does not set US$521 billion as a specific target for Indonesia’s domestic sports market.
Thohir mentioned that the global sports market is valued at approximately US$521 billion, or about 8,000 trillion rupiah, with an annual growth rate close to 8%. He also highlighted that the worldwide sports tourism sector is valued at nearly US$600 billion. Indonesian officials have connected sports activities with events, tourism, and other commercial ventures. The agreement from August provides the two ministries with a formal framework to coordinate investment activities related to these sectors. Additionally, it clarifies how government agencies can share data and licensing responsibilities within this cooperative structure.
Indonesia aligns sports development with licensing reforms
Part of the legal foundation for this collaboration is Government Regulation No. 28 of 2025, which governs risk-based business licensing and superseded a prior regulation from 2021. This regulation establishes service deadlines for authorities handling applications through OSS and includes a positive fictitious approval system—permitting permits to be approved automatically if authorities miss their deadlines, provided applicants meet all other requirements. Applicants must still satisfy all conditions and procedures for their specific business licenses.
Roeslani stated that the investment ministry has issued over 250 permits through this positive fictitious approval process, encompassing the broader licensing system and not limited to sports companies alone. He emphasized that the government aims to streamline procedures for investors and enterprises within the sports economy. The agreement also addresses the development of new investment opportunities and the promotion of projects linked to the sector, all within a shared framework coordinated between the two ministries and Indonesia’s national licensing infrastructure.
Enhanced interagency coordination on sports-related investments
The memorandum additionally covers workforce development initiatives and the interoperability of government data systems. Officials explained that the ministries will jointly monitor compliance via OSS and exchange relevant licensing information. The arrangement defines clear roles for each agency in managing sports-related investment issues, with investment promotion efforts integrated alongside regulatory oversight and business services. The Ministry of Youth and Sports can provide sector-specific data, while the investment ministry handles the wider licensing and investment frameworks used by businesses across Indonesia.
Therefore, Indonesia’s latest effort to boost sports investment centers on domestic regulation, licensing procedures, and interministerial cooperation. While the US$521 billion figure cited by officials reflects the size of the global sports industry, it does not represent Indonesia’s current market value. The August 28 memorandum links this international industry size with Indonesia’s initiatives to regulate sports-related commerce under Regulation No. 28 of 2025. The agreement establishes a formal structure to facilitate investment development, licensing, and government coordination across the sports sector.