Market Intelligence
Franchising Indonesia

Indonesia Franchising

Indonesia’s franchise market is among the most developed and competitive in the Asia-Pacific region. The demand for foreign franchisors to enter Indonesia is still significant, with consumer choices often following regional or international trends. For the past five years, many Korean and Japanese food and beverage brands have begun operations in Indonesia, partly due to the growing popularity of Korean and Japanese culture in Southeast Asia. This trend mirrors the experience of U.S. food and beverage brands that entered Indonesia in the 1980s with the popularity of American culture introduced by movies.

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.

Franchise by sectors according to Ministry of Trade Republic of Indonesia:

Foreign Franchise

  • Food and Beverage: 63%
  • Informal Education: 14.52%
  • Retail: 13.7%
  • Others: 8.78%

Local Franchise

  • Food and Beverage: 58.37%
  • Informal Education: 13.40%
  • Retail: 15.31%
  • Others: 12.92%

Recent discussions with Indonesian investor groups have indicated increased reticence toward partnering with new foreign brands and a preference for strengthening their existing brands.  However, new investor groups are starting to show interest starting their first franchising chains. Despite the relative lack of experience of these groups, they may be suitable option to for U.S. franchises hoping to enter the Indonesian market.

Franchisors should consider attending major franchise trade events, such as the Franchise License Expo Indonesia and International Franchise, License and Business Concept Expo and Conference both of which are usually held annually in Jakarta, Indonesia. Valuable assistance can also be obtained from the WALI (Indonesian Franchise and Licensing Assocation) at https://perhimpunanwali.com and AFI (Indonesian Franchise Association) at https://www.franchiseindonesia.or.id/

For more information, please kindly contact: Fidhiza Purisma at (Fidhiza.Purisma@trade.gov)