For years, Indonesia's sports sector budget has often been viewed as a passive expense that burdens the state treasury. Sports were merely considered an instrument for chasing medals, where funds were drained without any concrete financial return calculations for national development.
Now, the Ministry of Youth and Sports (Kemenpora) has begun shifting this policy direction by viewing sports as a strategic revenue opportunity. Concrete steps have been taken through massive deregulation, cutting 191 Ministerial Regulations down to just four core regulations. One crucial new pillar is establishing the sports industry and sport tourism sectors as legal foundations that provide certainty for private investors and promoters.
This transformation aligns with President Prabowo Subianto's ambition to achieve an 8 percent national economic growth target. With the global market value of the sports industry and sport tourism reaching thousands of trillions of rupiah, Indonesia aims to capture this opportunity by shifting the funding burden from the state budget (APBN) to more massive private investment participation.
This immense potential is supported by a fanatical fanbase in Indonesia that surpasses many developed countries. However, the challenge lies in competition governance. Currently, only three sports branches have an established professional ecosystem. Kemenpora is now targeting the initiation of nine professional sports leagues to create a circular ecosystem involving logistics, hospitality, and creative industries.
Moving forward, sports clubs are expected to transform into independent limited liability companies. With a healthy ecosystem, the state will not only gain tax revenue but also create new jobs. The success of this vision now relies on the synergy of all stakeholders to put aside sectoral egos in order to build a competitive national sports industry with high economic value.
