JAKARTA, INDONESIA / RankWire.AI / – Indonesia has officially established a new partnership between its investment and sports authorities aimed at boosting business activities within the national sports industry. Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed the formal agreement on August 28. The memorandum emphasizes the growth of investment opportunities and the implementation of risk-based business licensing. It further integrates sports-related investments into Indonesia’s existing national licensing framework. Officials contextualized the initiative within the global sports industry, valued at approximately US$521 billion.
The cooperation will be managed jointly by the Ministry of Investment and Downstreaming and the Ministry of Youth and Sports, covering licensing processes, investment promotion, and business support services. Their collaboration also involves regulatory oversight, compliance monitoring, and the exchange of licensing data. Indonesia’s risk-based business permit system, known as OSS, will now incorporate sports-sector investments into its structure. However, the memorandum does not establish US$521 billion as a target for Indonesia’s domestic sports market size.
Thohir highlighted that the global sports industry is valued at around US$521 billion, which he equates to roughly 8,000 trillion rupiah. He also mentioned that the sector experiences an annual growth rate of approximately 8%. Additionally, he estimated the worldwide sports tourism industry at nearly US$600 billion. Indonesian officials have connected sports activities with events, tourism, and other commercial services. The August agreement grants the two ministries a formal foundation to coordinate investment initiatives related to these areas, clearly defining responsibilities for sharing information and licensing duties.
Indonesia’s sports growth aligned with licensing reforms
Part of the regulatory framework underpinning this collaboration is Government Regulation No. 28 of 2025. This regulation, which governs risk-based business licensing, replaced a previous rule from 2021. It establishes deadlines for authorities processing applications via OSS and introduces a positive fictitious approval system for permits deemed eligible. Under this process, approvals can be granted if the responsible agency fails to respond within the specified timeframe, provided that applicants meet all conditions and procedural requirements for the license.
Roeslani noted that the investment ministry has issued over 250 permits through the positive fictitious approval mechanism. This figure includes licenses across various sectors and is not limited solely to sports enterprises. The government seeks to streamline procedures for investors and businesses involved in the sports economy. The agreement also addresses the development of new investment opportunities and the promotion of projects connected to the sector, with responsibilities shared between the ministries and Indonesia’s national licensing infrastructure.
Enhanced interagency cooperation on sports investment
The memorandum encompasses workforce development and interoperability between government data systems. Both ministries will coordinate licensing compliance efforts through OSS and exchange relevant information. This arrangement assigns specific roles to each agency for managing sports-related investments, integrating investment promotion with regulatory oversight and business support. The Ministry of Youth and Sports will provide sector-specific insights, while the investment ministry oversees the broader licensing and investment framework used nationwide.
Thus, Indonesia’s newest sports investment initiative primarily focuses on domestic regulation, licensing procedures, and interministerial collaboration. The US$521 billion figure serves as a benchmark for the global sports industry cited by officials, not as the current valuation of Indonesia’s sports economy. The memorandum signed on August 28 links this international market context with Indonesia’s efforts to regulate sports-related business activities under Regulation No. 28 of 2025. It establishes a formal structure for investment growth, licensing, and government coordination within the sector.