Indonesia taps franchise models to boost global expansion

Jakarta (ANTARA) - Trade Minister Budi Santoso is pushing for the expansion of franchise business models to accelerate local business growth and drive Indonesian products into the global market.

He said in Jakarta on Monday that franchises offer a distinct advantage because their management, production systems, and market share are already established, allowing entrepreneurs to launch businesses more quickly.

According to Budi, franchising is an attractive option for aspiring entrepreneurs due to its proven business model. However, he emphasized that the products must meet strict requirements to maintain quality control.

These stringent standards, he explained, are crucial to providing guarantees to franchisees, ensuring they can operate effectively and sustainably.

He affirmed that the Indonesian government continues to foster franchise growth as part of efforts to sustain national economic activity. As more businesses scale through franchising, their overall contribution to economic growth is expected to increase accordingly.

The Ministry of Trade also continues its efforts to expand Indonesian franchise networks abroad through various promotional and business-matching programs.

The government routinely promotes Indonesian franchise brands at international trade fairs, including in Singapore. Furthermore, the ministry is running a program specifically designed to boost the presence of Indonesian restaurants abroad through franchising schemes.

According to Budi, many Indonesian restaurants overseas are still family-run, making them vulnerable to closure once the original operators retire. Therefore, the franchise model is deemed a viable solution to ensure business continuity while expanding networks.

The minister noted that Indonesian trade representatives abroad have also been tasked with supporting the push.

"The task of our representatives is to seek investment and find local franchisees over there. That is what we have assigned them to do," he remarked.

Related news: Domestic franchise businesses should be able to expand overseas: govt

Related news: American franchise coffee house interested in kerinci coffee

Related news: ASEAN encourage MSMEs to expand into global market

Translator: Maria Cicilia, Raka Adji

Editor: Azis Kurmala

Copyright © ANTARA 2026