The Ministry of Youth and Sports (Kemenpora) is currently designing a new mechanism to measure the economic impact generated by various sports events in Indonesia. This step was taken as an effort to transform the sports sector so that it does not only focus on achievements, but is also able to become a measurable driving force for the national economy.
Minister of Youth and Sports, Erick Thohir, explained that so far sports events such as the MotoGP in Mandalika or various marathon events have been proven to provide a significant multiplier effect for the host regions. However, until now, data regarding the cost structure and economic contribution has not been documented using a standardized methodology.
For example, the MotoGP event in Mandalika is known to have generated an economic value of IDR 4.9 trillion from an organizing expenditure of IDR 600 billion. Similarly, marathon events involving thousands of participants, where the flow of funds from accommodation, transportation, and consumption during the event provides a real stimulus for local business actors around the event location.
Going forward, the Ministry of Youth and Sports is committed to improving the data collection system so that the effectiveness of every investment in the sports sector can be accounted for. This new paradigm is expected to strengthen the position of the sports industry and sports-based tourism (sport tourism) as a potential and sustainable source of state revenue.
