Domestic franchise businesses should be able to expand overseas: govt

Domestic franchise businesses should be able to expand overseas: govt

Acting Director General of Domestic Trade at the Ministry of Trade, Syailendra (middle), after handing out awards to Micro, Small, Medium, Enterprises (MSMEs) assisted by the Ministry of Trade at the Jakarta Convention Center (JCC), Friday, May 5, 2022. (ANTARA/Rizka Khaerunnisa/rst)

Jakarta (ANTARA) - Acting Director General of Domestic Trade at the Ministry of Trade Syailendra emphasized that domestic franchise businesses should be able to expand their products to foreign markets in accordance with Trade Minister Zulkifli Hasan's directive.

"It is time for our franchise businesses to go global, especially for retailers in the food and beverage (F&B) industry," he noted while opening the franchise and license exhibition at the Jakarta Convention Center (JCC) on Friday.

Syailendra said his side had agreed that local franchise businesses should be strengthened domestically, though it was also time for local franchises to expand overseas.

Syailendra echoed the ministry's readiness to support the expansion of domestic franchise businesses to the foreign market.

"For too long, we have been invaded by foreigners. Indonesia's hundreds of millions of people are a very soft market. Now, the time has come for us to attack back," he noted.

In addition to supporting the expansion of local franchises abroad, Syailendra said his side would encourage retail businesses to partner with small stalls.

"These retailers will supply the small stalls, although the products will not be one hundred percent similar. However, the products in retail can be sold to the stalls and at very competitive prices," he stated.

Syailendra said the franchise business was one of the business sectors that could help to strengthen Indonesia's domestic economy.

Based on the annual report that he had compiled, franchise business activities in 2020 had contributed one percent to Indonesia's GDP. He also noted that a total of 93,732 outlets were successfully opened and operated and had managed to absorb as many as 628,622 workers.

"Franchising is a solution for beginner entrepreneurs in starting a business. New local entrepreneurs can bring a good impact on the growth of the franchise business and a positive business climate," he stated.

Syailendra said the government estimated that the franchise business growth trend would continue to increase in line with rising demand and good response from the public.

In 2021, the growth of franchises in Indonesia was recorded, with 113 domestic franchisors already holding the Certificate of Franchise Registration (STPW). The number grew by five percent from the previous year. 

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