Indonesia urges youth to leverage local franchises for business growth

Tangerang, Banten (ANTARA) - Trade Minister Budi Santoso urged young entrepreneurs to leverage local franchises, describing the sector as an ideal entry point for launching businesses.

“Joining a franchise means everything is already laid out, and all you have to do is operate it,” Santoso said during the Franchise and License Expo in Tangerang, Banten, on Friday.

Santoso highlighted the strong growth potential of Indonesian franchise brands, ranging from culinary stalls to diverse consumer products.

However, he noted that many local operators still struggle to gain widespread recognition due to production and scale limitations compared to international competitors.

He emphasized that while franchising enables rapid brand expansion through new branch openings, long-term survival hinges on establishing robust management systems.

Ministry of Trade data shows that 169 domestic franchisors hold an official Franchise Registration Certificate (STPW).

In 2024, the national franchise sector generated over Rp143 trillion ($7.9 billion) in revenue and employed approximately 98,000 workers.

Beyond domestic growth, the minister encouraged local franchise owners to expand into international markets.

To assist global expansion, Santoso noted that the ministry operates 46 trade representative offices across 33 countries.

The government also runs business-matching programs to connect micro, small, and medium enterprises with overseas buyers, along with a "campuspreneur" initiative with universities to mentor emerging exporters.

Translator: Shofi Ayudiana, Raka Adji
Editor: Aditya Eko Sigit Wicaksono
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