Alfamart Franchise 2026: Investment, Options and Royalties

Alfamart offers prospective convenience store owners three routes into its franchise network: opening a new store, converting an existing shop or taking over an operating outlet. Details reported by CNBC Indonesia on 31 October 2026, citing the company’s official website, put investment in a new store at a minimum of IDR 300 million (Indonesian rupiah), with store takeovers starting at IDR 800 million.

Three routes for prospective franchisees

These options are important for anyone comparing franchise investment requirements and partnership arrangements. Each has a different starting point, so prospective franchisees should choose according to their existing business and available premises, rather than simply opting for the lowest investment figure.

Under the new-store option, prospective franchisees propose a site to be developed into an Alfamart outlet. The opening process includes an initial presentation, site assessment and approval, and a presentation of the investment proposal before the store officially opens. Proposed premises must therefore pass an assessment first.

The conversion option is aimed at owners of local convenience stores or small grocery shops who want to turn their businesses into Alfamart outlets. Unlike the new-store route, this option involves an existing retail business.

The takeover option allows prospective franchisees to acquire ownership of an Alfamart outlet that is already trading. Investment packages start at IDR 800 million. This starting figure should be distinguished from the new-store packages when comparing franchise proposals.

New-store investment starts at IDR 300 million

The listed investment for a new store varies according to floor area and the number of shelving units:

• Nine shelving units, 30 square metres: IDR 300 million.
• 18 shelving units, 60 square metres: IDR 350 million.
• 36 shelving units, 80 square metres: IDR 450 million.
• 45 shelving units, 100 square metres: IDR 500 million.

These investment packages include a franchise fee of IDR 45 million for five years’ use of the brand. Other components include electrical installation, store equipment, air conditioning, tills and an integrated retail information system.

Shopfront and other signage, arrangements for store permits, promotion and preparations for opening are also listed as part of the package. The IDR 45 million franchise fee for a five-year term is also mentioned under the store takeover option.

Prospective franchisees should use this breakdown as a basis for reviewing proposals, rather than treating it simply as an opening price list. Each component should be checked against the offer for the proposed location. Investment comparisons should also establish whether the proposals genuinely cover equivalent items.

It is also important to distinguish the five-year right to use the brand from the investment payback period. These are not the same measure. Prospective franchisees should request separate financial projections before using the investment figure as the basis for a decision.

Monthly royalties use sales bands

In addition to the initial investment, franchisees operating Alfamart stores pay monthly royalties. These are calculated progressively on the store’s accumulated net sales before tax, using the following reported bands:

• Sales up to IDR 150 million: 0 per cent.
• Sales above IDR 150 million and up to IDR 175 million: 1 per cent.
• Sales above IDR 175 million and up to IDR 200 million: 2 per cent.
• Sales above IDR 200 million and up to IDR 250 million: 3 per cent.
• Sales above IDR 250 million: 4 per cent.

As the system is progressive, prospective franchisees should request written examples of calculations at several sales levels. This will help clarify how each band applies and avoid the assumption that a single percentage automatically applies to total turnover.

When reviewing a proposal, royalties should also be considered separately from the brand-use fee. The latter relates to the period of brand use specified in the package, whereas royalties are a monthly obligation based on net sales.

Check legal requirements and premises early

Prospective franchisees must have an interest in, and commitment to, convenience store retailing. They must be Indonesian citizens and have a legally established business entity. The listed forms include a CV (an Indonesian limited partnership), a PT (a limited liability company), a co-operative or a foundation.

The stated premises requirements include having control of a business site with at least 100 square metres of sales area, excluding storage and administrative space. As the package list also includes smaller formats, prospective franchisees should confirm that their chosen store type meets the premises requirements before committing to an investment.

The listed documentation includes local environmental approval, tax documents, a TDP/NIB (company registration certificate/business identification number), a Franchise Registration Certificate, known as an STPW, and modern retail store permits, subject to local government regulations. Documents should be checked alongside the site assessment.

Practical next step: choose the option that suits your business circumstances, then request a written proposal setting out the investment coverage, premises requirements, legal requirements and illustrative royalty calculations before agreeing to the partnership.