Indonesia pursues US$521 billion sports industry opportunity through ministry collaboration

Indonesia pursues US$521 billion sports industry opportunity through ministry collaboration

Indonesia's government has formalized a strategic partnership to unlock investment opportunities in the global sports industry, which is projected to reach US$521 billion in 2026, representing approximately Rp8,000 trillion at current exchange rates.

Investment and Downstreaming Minister Rosan Perkasa Roeslani and Youth and Sports Minister Erick Thohir signed a memorandum of understanding on Friday, August 28, establishing synergy in risk-based business licensing and investment development across sports-related sectors. The agreement aims to position Indonesia as a significant player in an industry growing at 5.3 percent annually.

Roeslani, who assumed his ministerial role in August 2024 after serving as Indonesian Ambassador to the United States, emphasized the sector's transformative economic potential. The sports industry's impact extends beyond host cities to encompass tourism, hospitality, and related industries nationwide.

Streamlined licensing through digital innovation

The collaboration leverages Indonesia's Online Single Submission system, a centralized digital licensing platform launched in 2018 that integrates multiple government agencies. Under Government Regulation No. 28 of 2025, the Investment Ministry can automatically issue permits through a positive fictitious approval mechanism when other ministries fail to respond within agreed service timelines.

Since implementing this provision, the ministry has issued over 250 permits through the automated approval process. The approach builds on Government Regulation No. 5 of 2021, which introduced risk-based business licensing as part of Indonesia's Job Creation Law implementation, processing permits according to assessed risk levels and business scale.

The regulatory framework received further reinforcement in July 2026 when the Youth and Sports Ministry issued Regulation No. 9 of 2026 on the Sports Industry. This regulation introduces comprehensive provisions for risk-based business licensing, professional athlete regulation, and governance of professional sporting events, replacing the previous 2023 regulation.

Market potential and growth trajectory

Minister Thohir, appointed in September 2025 after serving as Minister of State-Owned Enterprises and currently chairman of Indonesia's football federation, highlighted the substantial economic value of the sports sector. Beyond the core sports market valued at US$521 billion, sports tourism represents an additional US$600 billion opportunity experiencing significant growth.

The minister noted that the sports industry's annual growth rate of 8 percent exceeds the economic expansion of many countries. Indonesia's domestic sports economy was projected to surpass IDR 42 trillion by 2025, with sustained annual growth of 5-7 percent driven by digital transformation, urbanization, and major sporting events.

Since taking office, Thohir has streamlined the Youth and Sports Ministry's regulatory framework, reducing ministerial regulations from 119 to just four. This consolidation aims to ensure sports performance and economic development progress together through coordinated involvement of government, private sector, and consumers.

Broader investment context

The sports sector initiative aligns with Indonesia's strong overall investment performance. The country attracted IDR 497 trillion in realized investment during the first quarter of 2026, representing approximately 7 percent year-on-year growth. Jakarta and West Java emerged as leading destinations, drawing IDR 74 trillion and IDR 72 trillion respectively.

Looking ahead, the Youth and Sports Ministry will host the Indonesia Sports Summit 2026 from September 11-13 at the Jakarta International Convention Center. Operating under the theme 'Beyond The Game 2.0: From Nation Building to Global Industry,' the summit seeks to establish Indonesia as a key player in the global sports industry through international engagement and partnership development.