Indonesia - Country Commercial Guide
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Top 5 Foodservice (by value) in 2021-2022

Table: Top 5 Foodservice (by value) in 2021-2022
NoRestaurant BrandCategoryNumber of outletsSales Value (US$ million)
1McDonald’s (Rekso Group)Fast food Restaurant235269303.6409.8
2KFC (Fastfood Indonesia PT, Tbk)Fast food Restaurant713719345.8408.2
3Pizza Hut (Sarimelati Kencana, PT, Tbk)Fast food Restaurant540562238.7247.2
4Starbucks (Sari Coffee Indonesia, PT)Coffee Shop443443110.5154.9
5Burger King (Sari Burger Indonesia, PT)Fast food Restaurant17224042.859.9

Source: Euromonitor International and company website

Table: Franchises in 2012-2023
Additional franchises650

Source: Indonesia’s Ministry of Trade and Indonesian Franchise Association

Indonesia has strong long-term potential for franchise businesses. The franchise industry began to enjoy widespread popularity in the early 1990s when many well-known U.S. franchises arrived in Indonesia. The Indonesian restaurant and food franchise sectors have consistently grown over the past decade due to increasing disposable income levels and a greater interest in socializing beyond their families and the workplace. Some Indonesians visit restaurants while waiting for Indonesia’s late afternoon and evening traffic jams to dissipate.  

Most Indonesian franchise seekers are interested in well-established and innovative food and beverage business concepts such as fine-dining restaurants, Quick Service Restaurants, pizza chains, hamburger chains, coffee shop chains, and ice cream shops. Most famous U.S. F&B brands are here in Indonesia, such as Kentucky Fried Chicken, Domino Pizza, Pizza Hut, McDonalds, Burger King, Carl’s Jr. Starbucks, Dunkin Donuts, and Baskin Robbins. The most recent U.S. F&B brand entering Indonesia is Subway, which was once in the country in early 2000. Since its opening in October 2021, Subway now has 88 stores throughout Indonesia.

The overall value of the Indonesian foodservice sector grew at a CAGR of 13.42% during the forecast period 2023-2029. Foodservice sales reached $48.73 billion in 2023 and expected to reach $103.76 billion in 2029. Full-service restaurants accounted for 83 percent of total foodservice sales, followed by fast food (6.3%), cafés/bars (6.0%), street stalls (4.6%), and self-service cafeterias (1%).

Franchisors should consider attending major franchise trade events such the annual International Franchise, License & Business Concept Expo and Conference and Franchise License Expo Indonesia both of which are usually held in Jakarta, Indonesia.

Leading Sub-Sectors

One hundred thirty-five franchise providers from domestic and international groups already have franchise registration certificates (STPW) by the end of July 2023. This number is up 5 percent compared to the previous year. Of the local franchises recorded by the Ministry of Trade, around 58.37 percent of them are in the food and beverage business. The retail sector followed with 15.31 percent and informal education at 13.40 percent. Meanwhile, around 63 percent of foreign franchises operate in the food and beverage sector. The informal education sector followed with 14.52 percent and retail at 13.71 percent. Sectors as diverse as informal education, retails, gym, and laundry have enjoyed growth in the recent year.

Local investors are receptive to well-known, established U.S. franchises. Quality, brand recognition, and innovation all play a big part in the success of U.S. franchises with Indonesian investors. In addition to product pricing, U.S. franchisors must consider adapting to local tastes to guarantee success in the Indonesian market. 


The most popular opportunities for franchising in Indonesia are in food and beverage sector, which accounts for roughly over 63%. Indonesia-developed brands dominate the market, followed by U.S., Korean, Japanese, and Southeast Asian countries brands.        

Rising disposable incomes and a large young population make Indonesia an attractive market opportunity. Demand for cafes, restaurants, and bars continue to rise in major Indonesian cities. Indonesia’s growing middle-class communities seek international cuisine, convenience, and after-hours venues for socializing. 

Recent discussions with Indonesian investor groups have indicated increased reticence toward partnering with new foreign brands and a preference for strengthening their existing brands. One factor contributing is the rupiah’s depreciation relative to the US dollar. However, new investor groups are showing interest in starting their first franchising chains. Despite these groups’ relative lack of experience, they may be a suitable option for U.S. franchises hoping to enter the Indonesian market. 


Ministry of Trade Republic of Indonesia:
Asosiasi Franchise Indonesia (AFI): https:// 
Perhimpunan Waralaba & License Indonesia (WALI):
Interested parties may contact Commercial Specialist Fidhiza Purisma at