High interest of the society in entrepreneurship has promoted business growth in Indonesia which has promoted business growth in Indonesia which has been increasing from year to year. This condition is marked by the emergence of new business opportunities and increase of public interest in various kinds of business investment in franchise business is very attractive.
The Trade Ministry sets target of revenue acquired by all franchise businesses in Indonesia in 2011 at UDR 132.4 trillions. This target has increased, where in 2010, sales turnover of all franchise businesses is recorded at IDR 114.6 trillions. This has made many people to be interested in franchise business that promises high profit.
According to Chairman of Indonesian Franchise Association (AFI), Anang Sukandar, franchise business is an easy way to start a business. The variety of franchise business is quite large, starting from food, laundry services, up to removal services.
Anang admitted that food and beverages is still dominating the franchise business. It is recorded that sales turnover of food and beverage business in 2010 reaches IDR 49 trillions. He said that franchise business is not only limited to food business. There are many other kinds of franchise business, like handicraft, culture, even swallow bird nest. He mentioned that for retail franchise business, target of sales turnover is set at IDR 38 trillions, property broker IDR 21.5 trillions, courier services IDR 0.1 trillions, education IDR 7.4 trillions, health & beauty IDR 2.9 trillions, fashion IDR 1.9 trillions, automotive IDR 0.7 trillions, and other businesses IDR 5.0 trillions.
He expected that increase of franchise business will reach 10% this year. He explained that Business Opportunity and Franchise is much different. Every year, increase of BO reaches 90% while franchise only 10%. For BO, he regretted that this kind of business is sometimes good and sometimes bad.
The development of franchise business shows that it is one of the business alternatives that could survive if compared to other businesses. This is proven by its contribution to labor absorption, business opportunity, and acceleration of technology transfer process. He said that the strength of franchise business is a partnership scheme between franchisor and franchisee which is mutually depending on each other, strengthening each other, and benefiting each other.