By Business Team Last updated on November 26, 2019

Due to the spending power of the Indonesian middle class, Indonesia is a good place to establish or expand a franchise. It is a safer alternative option to start your business.

Although the demand for a franchise business is high, the franchising regulatory is still complex. Investors need to go through bureaucratic procedures. There are some points you need to know before starting this business!

Best Possible Franchise businesses:



  Coffee joints

  Beauty & Fitness


  Digital Agencies


  And language centers!

Conditions to start the franchising business

Franchise Franchisor
Have specific business characteristics 5 years experience in the business
Has been proven to generate profits Does not necessarily need a legal entity
Have easy to learn & applied SOP on quality and service Must have SOP
Must have registered Intellectual Property Rights Capable to provide continuous support to the franchises
Needs to apply for licenses according to the activities  
Can sell supporting service or products, under 10% from the actual given license  
  1. Settle franchise agreement

  Provide prospect of an offer to franchisee 2 weeks before signing  

  The prospect offer and agreement have to be in Bahasa Indonesia

  Based on Indonesian Law

  1. Obtain a Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba/STPW)

If you want to know clearly the procedure to set up your company in Indonesia, feel free to contact us!