Ministry of Youth and Sports Partners with BKPM, Erick Thohir Targets Large-Scale Investment from Sports Industry

The Ministry of Youth and Sports (Kemenpora) of the Republic of Indonesia has entered into a partnership with the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) regarding the synergy of risk-based business licensing administration and investment development within the sports sector, on Friday, 28 August 2026.

This collaboration was formalised through the signing of a Memorandum of Understanding (MoU) by the Minister of Youth and Sports, Erick Thohir, and the Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, at the BKPM Headquarters in South Jakarta.

In his address, Erick stated that this cooperation aligns with the directives of President Prabowo Subianto concerning the 8 per cent economic growth target. During a previous meeting at Danantara, the President emphasised that achieving this target requires the development of all existing economic potential in Indonesia, including the sports industry, specifically sport tourism.

“Because the perception of sports in Indonesia today is still focused on financing issues, acting as a cost centre. In reality, discussing the sports industry and sport tourism is about generating revenue and investment,” said Erick.

He also noted that the potential of the sports industry is immense. Globally, the industry is valued at USD 521 billion, or approximately IDR 8,000 trillion, with significant annual growth. This potential serves as the foundation for the cooperation between Kemenpora and BKPM.

“With the support of Mr Rosan’s team, we have signed an agreement on how to accelerate the licensing system, which has often been a bottleneck,” he explained.

Furthermore, Kemenpora has been entrusted with managing the Indonesian Standard Industrial Classification (KBLI) for the sports sector, implementing Risk-Based Business Licensing (PBBR) for various types of sports-related businesses.

“Alhamdulillah, following discussions with Mr Rosan, we have developed a prototype web interface for the OSS (Online Single Submission) system. We have also created the ‘Sport in Indonesia’ website, which features our sports event calendar through 2029,” Erick added.

Erick further emphasised that this partnership represents Kemenpora’s commitment to developing Indonesian sports as both an industry and an investment destination, specifically by simplifying the licensing process for organising sporting events.