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Indonesia sports industry economic development

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2026-09-30 07:51 UTC → 2026-10-17 06:42 UTC · added ~~removed~~

Indonesian officials are promoting the integration of sports and entertainment, referred to as ‘sportainment’, to drive economic growth and public health. Minister of Youth and Sports Erick Thohir has advocated for viewing sports as a strategic economic investment rather than an expense, noting its potential to generate revenue through ticket sales, tourism, and tax contributions while managing the long-term healthcare costs of the nation’s demographic bonus. To formalize this approach, the Ministry of Investment and Downstream Development and the Ministry of Youth and Sports signed a memorandum of understanding to boost investment in the national sports industry, which officials estimate could be worth $521 billion (approximately Rp8,000 trillion). On August 28, 2026, Ministers Rosan Perkasa Roeslani and Erick Thohir formalized this partnership to coordinate investment development and business licensing through the Online Single Submission (OSS) system. On September 16, 2026, at the Indonesia Sports Summit, stakeholders emphasized the need for a more robust national sports ecosystem to ensure sustainable success. Asian Football Confederation (AFC) General Secretary Datuk Seri Windsor John noted that long-term football success requires vision, investment, and strong institutions. Simultaneously, the National Sports Committee of Indonesia (KONI) is advocating for development beyond mere athlete performance, pushing to integrate sport tourism and sports intelligence. On September 30, 2026, Minister Thohir highlighted the untapped potential of the sport tourism market. He noted that while the global market is estimated at Rp9,500 trillion, Indonesia currently captures only about 0.5 percent, or approximately Rp39.5 trillion. Citing the MotoGP at the Mandalika Circuit, which contributed an estimated Rp5 trillion to the economy, Thohir argued that sports investment serves as a tool for national character building and strengthening national branding.

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