MSME Ministry pushes Indonesian franchises' global expansion

Jakarta (ANTARA) - The Ministry of Micro, Small, and Medium Enterprises (MSMEs) is encouraging Indonesian franchises to expand beyond the domestic market and go global by adopting standardized business systems.

Speaking at the 2026 Info Franchise and Business Concept (IFBC) exhibition in Surabaya, East Java, on Friday, the ministry’s Deputy for Medium Enterprises Bagus Rachman said franchising can provide a fast track for MSMEs to scale up.

He highlighted that the model depends not only on brand strength but also on a replicable business system.

“The Ministry of MSMEs is committed to supporting Indonesian franchises not only to thrive domestically but also to expand abroad,” he said in a press release.

According to Bagus, franchising involves standardization, marketing strategies, brand development, and expansion mechanisms, enabling business owners with proven models to scale up without having to build every new branch themselves.

He noted that Indonesia’s franchise sector is becoming increasingly diverse. It is no longer dominated by food and beverage businesses but has expanded into education, health, beauty, and services.

He reaffirmed that the ministry remains committed to strengthening the national franchise ecosystem, including by encouraging more local brands to meet legal requirements and obtain a Franchise Registration Certificate (STPW) so they are fully prepared to enter overseas markets.

According to Trade Ministry data, as of April 2026, 169 local franchisors and 163 foreign franchisors held STPWs.

To better prepare small businesses, the Ministry of MSMEs is integrating franchise development into its broader empowerment programs, focusing on operational standardization, access to financing, mentorship, and expanded market access.

Bagus explained that the development of Cluster-Based MSME Holding Companies is designed to position medium-sized enterprises as anchors that integrate smaller businesses into industrial supply chains.

The model helps MSMEs improve quality standards and production capacity, creating a stronger foundation for future expansion through franchising, he added.

“Once proven domestically, MSME holding companies can become Indonesia’s master franchisors. Thus, they export not only products, but their entire business systems,” Bagus explained.

He underscored the need to integrate franchise development into an empowerment ecosystem that connects brand strengthening, standardization, financing, mentorship, marketing, and market expansion.

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Translator: Shofi Ayudiana, Raka Adji
Editor: Primayanti
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