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Trade Ministry still ‘discussing’ franchise road map
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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 supported local franchise owners. (Antara/Puspa Perwitasari)
T
he Trade Ministry is still working on new regulations for franchise businesses together with the Indonesian Franchise Association (AFI) in an effort to help local companies compete internationally.
“We are still discussing it with business players. We need to see their concept first, then talk about it together,” Trade Minister, Enggartiasto Lukita, told reporters on Friday.
(Read also: Franchises help support economy: Jokowi)
The road map will serve as guidance for franchisors, informing them about the basic criteria for obtaining the franchise registration certificate (STPW).
Based on those criteria, a franchise business must be unique, proven successful, have a prototype, have a customer base and still be in the growth stage, AFI CEO Anang Sukandar said on the sidelines of Indonesia Franchise & SME Expo.
“Also, it has to be proven profitable, standardized and able to be operated by people with no experience [in the field],” he added.
According to Trade Ministry data, only 52 local franchisors have obtained the STPW as of September, as opposed to 308 foreign ones. (win)
