The business are optimistic
that franchise business will still be growing. With the improvement of
purchasing power of the middle class, franchise business becomes very
potential. Thus, the franchise business operators support the ministry of
Trade, which seeks to assist and encourage owners of business opportunity to
able to implement a franchise system in running their business. Mentoring
programs that have been implemented by the Ministry of Trade since 2012 has
been proven successful in encouraging the growth of Indonesian local franchise.
Business operators who are members to the Chamber of
Commerce and industry (KADIN Indonesia) expect the new government under the
leadership of Jokowi-Jusuf Kalla to give attention to the development of local
franchises. Amir Karamoy, Chairman of the Standing Committee on Franchising,
Licensing and Partnership, of KADIN Indonesia, in Jakarta, on Wednesday
(September 17) said that his party hoped that the new government will be able
to encourage franchise development in the country and to continue support
commitment that has been implemented by the current administration.
Amir said that there are there factors that make a
franchise business promote economic activities in the country. First, like two
sides of a coin, franchise business will encourage labor absorption and make a
number of entrepreneurs to continue growing. Second, franchise business is included
in the creative economy sector. This is because every franchise business starts
as a business idea based on creativity and requires creativity and
intelligence. Third, franchise system will encourage the growth and development
of small and medium enterprises at local level.
Even though the development of franchise business in
Indonesia is quite rapid, many people are still skeptical about its legal
certainty. Currently, legal certainty to run a franchise business has been much
better than before 1997. This can be seen from the issuance of a number of laws
to protect franchise business operators.
In terms of the business sector, the growth of the
franchise business in Indonesia is particularly evident in the food and fast
food sectors. This development was mainly supported by the application of a
cell or pyramid system. Through this system, business operators as the
franchisee is required to development its business through a master franchise
it receives by way of searching or appointing other franchise for further
expansion. With this kind of mode, the network in the franchise business will
continue to expand on an ongoing basis.
Meanwhile, the Indonesian franchise association (AFI)
predicted that the number of national business that are able to develop
franchise business is still relatively low this year or are less than five
business. Chairman of AFI, Anang Sukandar, said that if there are any business
that do business with the partnership system, it usually leads to a business
opportunity rather than a pure franchise business.
Anang said that business who have obtained a Franchise
Registration Certificate (STPW) can not necessarily be classified as a
franchise business. The biggest issue, which is difficult to be met, is
especially in terms of the uniqueness of the business. The uniqueness is not
only based on the business time chat can be opened 24 hours, picking and
delivery, or having a special taste. Therefore, it is not uniqueness, but only
something which can be done by anyone.
Citing data from the Ministry of Trade in 2013, of 125
companies who have obtained STPW, franchisor in the country is only 2.4% or
about 3 businesses, while foreign franchisor controls up to 60%. In terms of
types of business, food/beverage business is the largest (49.6%), followed by
retail (24%), and education (20.8%). These areas are still largely dominated by
foreign branded products. (E)
Business News - September 19, 2014
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