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Franchises help support economy: Jokowi
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President Joko "Jokowi" Widodo (right) chats with Coffee Toffee franchise owner Odi Anindito during the opening of the Indonesia Franchise and SME Expo (IFSE) 2016 in Jakarta on Friday. Jokowi said the government supports local franchise owners. (Antara/Puspa Perwitasari)
P
resident Joko “Jokowi” Widodo said on Friday the government pays a lot of attention to franchise businesses because they play a key role in purchasing local products and creating jobs, which would eventually spur the economy.
(Read also: Businesses, investors to exchange ideas at franchise expo)
As many franchise businesses already provide standardized concepts and facilities, they could help businesses to accelerate expansions and cut unnecessary costs. Thus, they create a multiplier effect to help the local economy.
“Es Teler already have 180 branches now; imagine how many tons of avocados and jackfruits Es Teler needs to use? Baba Rafi has 1,200 outlets; how many employees have they hired?” Jokowi said during the opening speech of the “Indonesia Franchise & SME Expo” in Jakarta Convention Center.
Indonesia has a big potential to expand franchise businesses because of its large size with 34 provinces and 516 regencies.
“Franchises also help entrepreneurs with limited capital to expand their businesses faster,” Trade Minister, Enggartiasto Lukita said.
According to the data from Indonesia Franchise Association, there are 698 franchise businesses in Indonesia with 24,400 branches. The country’s franchise businesses posted Rp 172 trillion (US$12.7 million) of turnover annually. (win/jun)
