JAKARTA, INDONESIA / RankWire.AI / – Indonesia has strengthened cooperation between its investment and sports ministries to foster growth in the nation’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. The agreement focuses on risk-based licensing and investment promotion across various sports-related activities, with officials citing a global sports market valued at about US$521 billion as the broader context for this initiative.
This accord unites the Ministry of Investment and Downstreaming with the Ministry of Youth and Sports on licensing matters. It also aims to enhance investment promotion and support services for companies in sports-related fields. Both ministries will work together through Indonesia’s Online Single Submission system, known as OSS, covering compliance monitoring, regulatory coordination, and data exchange. The framework is designed to facilitate investment growth within Indonesia’s sports sector, rather than targeting a US$521 billion domestic industry.
Thohir highlighted that the global sports industry is valued at approximately US$521 billion, or about 8,000 trillion rupiah, with an estimated annual growth rate of 8%. He also noted that this figure excludes sport tourism, which he valued at nearly US$600 billion worldwide. Indonesian authorities see both sports and sport tourism as sectors linked to events, travel, and supporting industries. The memorandum establishes a formal administrative structure to promote investment activities in these areas.
Licensing Framework Bolsters Sports Investment Initiatives
Part of the licensing infrastructure is governed by Government Regulation No. 28 of 2025, which replaces the 2021 regulation. This regulation emphasizes risk-based licensing and enhances service deadlines within the OSS platform. Under the positive fictitious approval mechanism, permits can be issued when authorities do not respond within set timeframes, provided applicants meet all procedural requirements beforehand.
Since the regulation’s implementation, Roeslani stated that the investment ministry has granted over 250 permits via this mechanism. These permits include those outside the sports sector, covering the broader licensing system. He emphasized that the government aims to clarify licensing procedures for companies and investors in the sports economy. Roeslani also mentioned tourism and other industries as interconnected sectors. The memorandum formalizes these licensing functions through an interministerial coordination framework.
Enhanced Government Collaboration in Sports Sector
The agreement also addresses workforce development and the interoperability of licensing data between the two ministries. It encompasses investment opportunity development and promotion, with both ministries coordinating oversight of compliance through OSS. These measures link sports investment to Indonesia’s existing licensing infrastructure and establish a clear basis for information exchange and regulatory coordination regarding sports sector activities.
Ultimately, Indonesia’s latest sports investment agreement emphasizes licensing, investment facilitation, and interagency collaboration. The US$521 billion figure reflects the global market size cited by officials, not the current scope of Indonesia’s sports economy. Domestic licensing reforms under Regulation No. 28 of 2025 accompany this context, with the August 28 memorandum formalizing cooperation within this regulatory framework to support sports investment growth.