Ministry of Youth and Sports prepares scheme to calculate economic impact of sporting events

Jakarta (ANTARA) - The Ministry of Youth and Sports (Kemenpora) is preparing a scheme to calculate the economic impact of sporting events, which could serve as a benchmark for understanding the contribution of sports development to the national economy.

“We are preparing a breakthrough (regarding cost structure and economic impact) that we will announce in due time,” said Youth and Sports Minister Erick Thohir to journalists in Jakarta on Friday.

He explained that sporting events held in Indonesia have so far contributed to economic growth, particularly in host regions.

However, the economic value generated by sporting events has yet to be calculated with a cost structure supported by comprehensive data.

The minister cited the example of the MotoGP at Mandalika, West Nusa Tenggara, which cost up to Rp600 billion but generated an estimated economic impact of Rp4.9 trillion.

In addition, he said, marathon events, such as the one he attended recently in Yogyakarta with 12,000 participants, also generate economic impact through participants’ spending on accommodation, food and drink, transport, and other needs.

“There is certainly an economic impact, there is clearly revenue, but we are not yet accustomed to calculating the cost structure and economic impact. This is what we need to re-examine with proper data,” he said.

The minister said that youth and sports development is now aimed not only at achievements, but also directed towards an investment paradigm so that it can contribute as a source of state revenue.

Therefore, his ministry continues to promote the growth of the sports industry and sports tourism, which have a direct impact on the national economy.