Cara Memulai Bisnis Waralaba di Indonesia

Starting an Indonesian company as a franchise is a relatively safer business model as compared to other types of business entities. The reason is simple – you start off with a reputable and known brand name that millions know about while enjoying the benefits of investing in the populous, vibrant nation of Indonesia.

Indonesia is indeed an ideal nation for franchising business model as there is a huge, young, and digitally savvy population with a growing middle class.

Like all other types of business, franchise businesses in Indonesia still need to go through significant bureaucratic procedures and complex laws that regulate this type of investment. Investing time and finances into running a franchise business in Indonesia as a foreigner is not impossible. Those who choose to do so require proper preparation and knowledge of the various steps to be taken.

In Indonesia, both the franchiser and the franchisee can be either individuals or legal entities and either residents or non-residents (this varies depending on the entity registration and location). Franchisers can rely on sub-franchisers (resident or non-resident) to run their business in a pre-determined location.

The requirements to set-up a franchise in Indonesia are listed below:

A disclosure document, which reveals the franchisor’s ID and company history, the franchisor’s enterprises and organisational structures, a list of all franchisees, and details of both franchisors and franchisees’ rights and obligations, is also required to register a franchise in Indonesia.

Franchisors must present audited balance reports for the previous two years, with the exception of small organisations. A recognised entity must legitimate any disclosure documents received from a foreign franchisor.

Every franchise in Indonesia is bounded by the stipulations specified in such agreements. Franchisees must then guarantee that they will follow all of the operational directions specified in the franchising agreement. Franchisors typically provide training, guidance, and assistance to franchisees.

While franchising can be a lucrative business model, some may prefer to set up their own company as a form of full ownership tied to that particular brand. For those who are interested in creating a new brand from scratch, you can opt for a local PT or a PT PMA company. These are the two most common types of business entities in Indonesia.

Incorporating a company in Indonesia, be it local PT or PT PMA company, has their own set of advantages and disadvantages. It is recommended that you understand more about each business type before incorporation.