Franchise De-regulations Announcement Coming In March

The Indonesia Trade Commision is expected to make an official statement in regards to four different trade administrations by March. According to Business Indonesia, it will largely be about business enlargement and trade regulation relief.

According to revisions, the current franchise business restrictions on restaurant and retail store items of being 80% domestic will be repealed. Currently there are restrictions for only 150 retail stores, and 250 restaurants allowed. To be able to go over this will also affect sub-franchises as well as other companies.

President Lefita of the Indonesia Franchise License Association commented about the joint administration reform as well. President Lefita explained that this year, the number of registered franchises has increased 10% from last  year. Last year the percentage was 8% or 1,000 franchises. Infrastructure improvements have continued to help developed franchise businesses, and it is estimated to grow even more.

On the 5th, the Jakarta Post indicated that the small business association, Akumindo’s President Iksan criticised, “In order for small businesses to be protected, regulations are necessary.” Relaxing regulations would only benefit preferential areas. There needs to be equal treatment for all small businesses.


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