The Ministry of Youth and Sports (Kemenpora) is currently finalizing an integrated calculation system to measure the economic impact of every sporting event held in Indonesia. This step was taken in response to the lack of accurate data capable of dissecting the cost structures and real economic value behind sporting events, both at national and international scales.
Minister of Youth and Sports, Erick Thohir, emphasized that the paradigm of national sports development must now shift from merely pursuing medal achievements to utilizing sports as an instrument of economic growth. Up until now, the economic potential of various sporting events has often not been well-mapped, even though this sector directly intersects with the hospitality, transportation, culinary industries, as well as local MSME empowerment.
As an illustration, Erick highlighted the hosting of MotoGP at the Mandalika Circuit, which recorded an economic impact reaching IDR 4.9 trillion, far exceeding the operational costs of IDR 600 billion. A similar trend is seen in smaller-scale events, such as marathons, which have proven capable of driving regional economies through accommodation and consumption spending by thousands of out-of-town participants.
Through the scientific calculation method currently being formulated, the government seeks to create an objective evaluation instrument. The resulting data will serve as a strategic foundation for the government in drafting more targeted sports industry policies, while providing certainty for investors regarding the potential returns and positive impacts generated by this sector.
Furthermore, Kemenpora is optimistic that the development of this system will strengthen the *sport tourism* ecosystem in Indonesia. By integrating sporting events with tourist destination promotion, the government targets the sports sector to not only be a source of pride on the achievement stage, but also become a new backbone in improving public welfare and national economic competitiveness.
