Raising franchise standards in Indonesia

Franchising in Indonesia has roots in automotive licensing arrangements dating back to the 1950s. Local names such as Es Teler 77 subsequently embraced franchise arrangements, while international restaurant brands helped make the model more familiar to consumers. McDonald’s opened its first Jakarta outlet in 1991, becoming a prominent example of international expansion. Indonesia introduced its first franchise-specific regulatory regime in 1997, marking an important step towards a more formal framework for franchisors and franchisees.

Today, Indonesia’s franchise community includes both domestic and international businesses, with the Indonesian Franchise Association, known as AFI, among its established organisations. In early February 2025, 311 franchise providers held valid franchise registration certificates. Food and beverage businesses are prominent, alongside beauty and health, non-formal education and retail. Exhibitions such as IFRA and FLEI bring brands and prospective business partners together, reflecting the continuing interest in franchising as a route to entrepreneurship and business expansion.