The Ministry Of Industry And KONI Sign Cooperation In The Development Sector Of The National Sports Industry

JAKARTA - The Ministry of Industry (Kemenperin) is collaborating with the Indonesian National Sports Committee (KONI) in order to encourage the development of the sports industry amid the increasing trend of a healthy lifestyle for the community.

The cooperation between the Ministry of Industry and KONI was inaugurated through the signing of a memorandum of understanding regarding the development of the sports industry sector.

"We see great opportunities on this trend as a potential market niche for industry players of domestic sports equipment, clothing and footwear to grow and exist in local to international markets. Thus, it is able to strengthen and advance the Indonesian sports industry sector," said Minister of Industry (Memperin) Agus Gumiwang Kartasasmita in a press conference at his office, Thursday, October 10.

The Minister of Industry assessed that the sports equipment industry sector has considerable economic contribution potential. This opportunity can be seen from the role of the sports equipment industry which is considered capable of increasing export value.

Based on Trademap.org data in 2023, Indonesia is ranked 24th as a sports equipment exporter with a market share of 0.66 percent.

The five main export destination countries for Indonesian sports equipment industry products are the United States (38 percent), Japan (15 percent), South Korea (10 percent), China (5 percent) and the Netherlands (5 percent).

While the main products exported include sports gloves, fishing lines, golf balls, inflatable balls and baseball and softball gloves.

"We hope that by 2024, the export performance of the sports equipment industry will develop and have a greater role in increasing export value," he said.

Not only contributing to exports, the sports equipment industry sector is actually a labor-intensive industry. Based on data from the Medium Industry Processed by the Central Statistics Agency (BPS) in 2023, the number of sports equipment industries in Indonesia was recorded at 65 business units that had absorbed more than 12,000 workers.

"There is potential for the sports equipment industry in Indonesia, including shuttlecocks, balls, tennis tables and other sports equipment that can be used in local competition sports activities, such as PON, IBL and Pro Liga," he said.

Agus revealed, in terms of quality and product quality assurance, many products in the domestic sports equipment industry have met the Indonesian National Standard (SNI).

In fact, he has pocketed a Domestic Content Level (TKDN) certificate.

So, it can be included in the procurement or government spending.

Currently, there are 78 SNIs for voluntary sports equipment.

"For example, football made by PT Global Way Indonesia in Madiun, East Java. This ball has been used at the 2022 World Cup event in Qatar because it is in accordance with international standards," he said.

Even so, Agus admitted that there are still many challenges that the sports equipment industry must face in order to be competitive in the domestic and foreign markets.

Among other things, the demand for volatile goods because this industry is mostly related to hobbies or is often considered a tertiary need and the entry of similar imported goods with low quality and low prices through the marketplace.

"I know this industry must also face challenges, that some raw materials and components that are not yet available in the country and the lack of optimal partnership between producers and the parent sport," he said.

Therefore, Agus hopes that through synergy between the Ministry of Industry and KONI, the use of domestic sports industry products that meet national and international standards in sports activities organized by KONI will increase.

"The Ministry of Industry is committed to contributing to encouraging industrial companies to participate in the development of Indonesian sports while at the same time encouraging the growth of outstanding athletes in the regions through the implementation of sports events at the regional and national levels," he said.

Meanwhile, the General Chairperson of the Central KONI, Lt. Gen. TNI (Ret.) Marciano Norman, said that the national sports industry sector must be able to seize very large opportunities from the current sports community.

Marciano admitted that the industrial equipment and sports equipment in Indonesia is quite large and of high quality. He said, this needs to be optimized. Moreover, the market in Indonesia is very large.

"Our sports industry products are progressing and our market is quite large," he added.