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Indonesia sports industry economic development

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2026-08-31 07:15 UTC → 2026-08-31 22:37 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). Minister of Investment and Downstreaming Rosan Perkasa Roeslani and the Ministry of Youth and Sports (Kemenpora) aim to synergize risk-based business licensing and investment development to expand opportunities in sectors such as sports tourism. On August 28, 2026, Ministers Rosan Perkasa Roeslani and Erick Thohir formalized this partnership to coordinate investment development and business licensing. This agreement integrates sports-related investments into Indonesia’s existing risk-based national licensing framework and the Online Single Submission (OSS) system, facilitating regulatory coordination, compliance monitoring, and data exchange. Minister Thohir noted that the global sports industry is valued at approximately US$521 billion with an annual growth rate of about 8%, while the global sports tourism market is estimated at nearly US$600 billion. The Indonesian initiative seeks to link sports activities with tourism, events, and other commercial services to drive economic growth. Under Government Regulation No. 28 of 2025, the ~~Online Single Submission (OSS)~~ OSS system is authorized to automatically issue permits if approvals from other ministries are not received within agreed service level agreements. ~~Minister Thohir noted that the sports industry is currently growing at approximately 8 percent annually.~~

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