Government Pledges to Ease Licensing Bureaucracy to Pursue Rp 8,000 Trillion Sports Industry Potential
JAKARTA, CS – The Indonesian government is moving quickly to tap the substantial economic potential of the national sports sector. The move was marked by the signing of a Memorandum of Understanding between the Ministry of Investment and Downstreaming/BKPM and the Ministry of Youth and Sports (Kemenpora) in Jakarta on Friday (28/8).
The strategic partnership focuses on strengthening the Risk-Based Business Licensing system while creating a more conducive climate for sports investment.
The potential investment value in the sports sector is estimated to reach USD 251 billion, or approximately Rp 8,000 trillion. The government believes that capital inflows in this area will not only boost national investment figures but also have a multiplier effect on the tourism sector and local community economies.
Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani explained that regulatory certainty is the key to attracting investor interest. The presence of Government Regulation (PP) No. 28 of 2025 now provides guaranteed licensing timelines through the positive fiction mechanism in the Online Single Submission (OSS) system.
“The impact is not only on the city hosting the activity, but also has an overall effect on the economy. Not only in terms of sports, but also impacts tourism and other industries,” Rosan said in an official statement on Saturday (30/8).
Rosan added that if a permit from the relevant ministry has not been issued in accordance with the agreed Service Level Agreement (SLA), the OSS system will issue the permit automatically. This mechanism has proven effective, with more than 250 business permits issued to date.
On the other hand, the economic potential of sports is also reinforced by the growth of the sport tourism sector, which is no less promising. The growth rate of this industry is considered relatively high compared with economic growth in various countries.
Minister of Youth and Sports Erick Thohir expressed optimism about the prospects of Indonesia’s very large sports market.
“The sport industry is worth approximately USD 521 billion or Rp 8,000 trillion, with annual growth of 8 percent, higher than the economic growth of many countries. Not to mention sport tourism, which is valued at almost USD 600 billion and is also growing significantly,” Erick said.
The synergy between the two ministries includes policy harmonisation, monitoring of business compliance through OSS, human resource capacity building, and licensing data integration. Through this collaboration, the government is optimistic it can strengthen the national sports industry ecosystem while providing ease and legal certainty for business actors.