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Indonesia's sports industry has received increasing commercial interest, with the increasing number of investments in professional clubs, sports venues, fitness businesses, event organisers, sponsorships, and athlete management. To accommodate these developments, the Ministry of Youth and Sports ("MoYS") issued MoYS Regulation No. 9 of 2026 on the Sports Industry ("MoYS 9/2026"), revoking MoYS Regulation No. 3 of 2023. Unlike its predecessor, which focused on the development of the sports industry, MoYS 9/2026 introduces risk-based business licensing, professional athlete regulation, and governance of professional sporting events.
This article highlights important provisions introduced under MoYS 9/2026 relevant to sports businesses, investors, event organisers, professional clubs, and other commercial stakeholders.
Licensing and Risk-Based Business Licensing for the Sports Industry
MoYS 9/2026 introduced licensing provisions for sports businesses, which were not regulated in the previous regulation, MoYS 3/2023.
Article 77 of MoYS 9/2026 requires sports business operators to comply with business standards based on their risk classification (low, medium-low, medium-high, and high risk). The risk classification is subject to the intended business activity. For instance, the Sport Arena activities (93113) are regarded as medium-to-high risk activities, in which the business actors shall obtain the Business Identification Number (“NIB”) and Standard Certificate as the license. In obtaining those licenses, the businesses of Sport Arena shall comply with the standard requirements set out in Appendix 1 of MoYS 9/2026, including, among others, having a warehouse, first aid equipment, and an administrative office within the Arena.
Dedicated Regulation on Professional Athlete Status, Employment Relationship, and Athlete Rights
MoYS 9/2026 also introduces detailed provisions governing professional athletes, an area that was not specifically regulated under MoYS 3/2023. Based on Article 41, an athlete can be considered a professional athlete if he/she:
- Is an amateur athlete and/or has participated in a periodic competition;
- complies with the employment law in Indonesia; and
- satisfies the required health conditions
Please refer to the following table for further elaboration of the above elements:
|
Requirements |
Remarks |
|
Is an amateur athlete and/or has participated in a periodic competition |
This requirement can be evidenced by: a. a statement letter confirming his/her membership in an amateur sports club/association, and/or a statement or certificate, or other document evidencing his/her participation in a periodic competition; and b. a recommendation letter from the relevant sport federation |
|
complies with the employment law in Indonesia |
Employment contract with the relevant sport federation or professional club. The contract contains the following mandatory provisions: a. the rights and obligations of the parties; b. the wage, bonus, allowance, and insurance; c. the term of contract; d. the support for the performance of the athlete; and e. the dispute resolution. |
|
satisfies the required health conditions |
Health certificate issued by the Doctor who is appointed by the relevant sport federation. |
(Articles 41-45 of MoYS 9/2026)
Moreover, MoYS 9/2026 also establishes various athlete rights that previously lacked explicit regulatory recognition. The athlete has the right:
- to be accompanied by his/her manager, coach, medical staff, psychologist, legal expert, and any other experts as necessary;
- to participate in championships at all levels, subject to the technical and administrative requirements set by the relevant sport federation, professional sport organization, and/or competition organizer;
- to receive coaching and development from the relevant sport federation, professional sport organization, and/or functional sport organization; and
- to receive adequate income in accordance with the standard determined by the sport federation.
(Article 46 – 50 of MoYS 9/2026)
In light of the above development, we note that professional clubs, sports agencies, leagues, and investors should revisit their athlete contracts to ensure that the contracts are already aligned with MoYS 9/2026. In many cases, the professional club only signs a simple contract with the athlete, only covering the athlete’s salary. Following MoYS 9/2026, the club should consider revising its standard player agreements to address matters such as athlete status, contractual obligations, and mandatory athlete rights in accordance with MoYS 9/2026.
Regulator Involvement over Professional Sports Events
MoYS 9/2026 also strengthens the governance over professional sporting events. A professional sporting event organizer shall coordinate and consult with MoYS to determine the:
- location;
- time;
- governance; and
- standardization of the event.
Moreover, foreign investors planning to hold an international sporting event in Indonesia shall cooperate with the relevant sporting federations and/or clubs. For instance, if an event organizer plans to launch an international martial arts tournament sponsored by multinational companies, they still need to work with the relevant national sports federation in Indonesia in accordance with MoYS 9/2026 before the event proceeds, although commercial arrangements with sponsors are already completed. In this regard, private event organizers should work with the relevant sports federation during the planning stage rather than treating federation involvement as a post-event administrative process (Article 71 to 75 of MoYS 9/2026).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
