Antara News·Indonesia·Friday, November 6, 2026 at 04:08 PM UTC

Ministry urges local franchises to tap capital market

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Shofi, Kenzu

Jakarta (ANTARA) - The Ministry of Micro, Small, and Medium Enterprises (MSMEs) has encouraged domestic franchise businesses to tap the capital market as an alternative source of financing to expand business scale and strengthen competitiveness.

“Franchise businesses with strong fundamentals have the opportunity to secure funding through the Indonesia Stock Exchange (IDX) Acceleration Board as a step toward becoming publicly listed companies through an initial public offering (IPO),” Deputy Minister for Medium Enterprises Bagus Rachman said, as quoted in a ministry statement on Friday.

Speaking at the Indonesia Franchise & Business Concept (IFBC) event in Tangerang, Banten, he said around 43 small and medium-sized enterprises (SMEs) had accessed the IDX Acceleration Board, raising a total of Rp2 trillion.

According to him, the achievement demonstrates that the capital market can serve as an alternative source of financing for small and medium-sized businesses seeking to accelerate their growth.

In addition to the capital market, the ministry also encouraged franchise operators to access bank financing through the People's Business Credit (KUR) program, both to establish businesses and expand their business networks.

Rachman stressed that strong business fundamentals are essential for franchise operators seeking to expand their operations and gain access to broader financing opportunities.

To achieve this, he said, businesses need to strengthen their standard operating procedures, maintain consistent product and service quality, implement professional management practices, and protect their trademarks.

He also noted that fulfilling legal requirements, including obtaining a Franchise Registration Certificate (STPW), is necessary to provide legal certainty for both franchisors and franchise partners.

The Ministry of Trade recorded 169 domestic franchisors holding STPW certificates.

In 2024, Indonesia's franchise industry generated more than Rp143 trillion in turnover and employed approximately 98,000 workers.

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