Franchise operation in Indonesia

Regulation of Ministry of Trade No.31/M-DG/PER/8/2008 regarding the Franchise Operation (August 21, 2008) is required both Franchisor and Franchisee to obtain a franchise business registration certificate (“Surat Tanda Pendaftaran Waralaba or STPUW”) by registering the franchise offering prospectus. STPUW is valid for 5 years period and can be extended for the same period. The foreign franchisors and subsequent foreign franchisor shall submit application of STPUW to the Directorate of Business Development and Corporate Registration, Directorate General of Domestic Trade, Ministry Trade. Furthermore, franchise offering prospectus registered by foreign franchisors shall be legalized by the Notary Public by enclosing the Certificate from Trade Attache or official of representative of RI in country of origin. If the foreign franchisors, foreign franchisees and subsequent foreign franchisors do not register their franchise offering prospectus, they shall pay a fine maximum Rp 100.000.000,- .