ASENSI Urges Trade Mark Protection Before Franchise Expansion

The Indonesian Licensing Association (ASENSI) is urging micro, small and medium-sized enterprises (MSMEs) to protect their trade marks from the outset. Delivered at KRISTA InterFOOD 2026 in Tangerang, the message highlights protection of a business’s identity as essential groundwork before smaller firms expand through licensing or enter the franchising sector.

Trade mark protection should not wait until a business grows

ASENSI Chair Susanty Widjaya made the appeal at KRISTA InterFOOD 2026, held at the Nusantara International Convention Exhibition (NICE) PIK 2 in Tangerang, on 5 November 2026. In coverage published by Harian Disway on 6 November, she highlighted how many MSME owners still lack an understanding of intellectual property (IP) rights, particularly trade mark protection.

According to Susanty, early protection is necessary to avoid disputes later. The issue concerns not only the name displayed on products or business premises, but also owners’ right to continue using the identity they have built.

“As a result, entrepreneurs who have built and developed a product from the outset can actually lose the right to use their business identity,” she said.

This warning underpins ASENSI’s message to MSMEs: product development and business growth need to go hand in hand with attention to trade mark protection. Waiting until a business has grown before considering this issue is not an approach the association recommends.

For owners preparing to expand their networks, the message also establishes a clear order of priorities. Before offering others the use of a brand, protecting the business’s identity should be part of the preparations, rather than something addressed only after problems arise.

IP education is a focus for ASENSI

ASENSI says raising awareness of IP rights is one of its main areas of activity. Since 2019, the association has held meetings and educational activities, working with the government and several ministries to improve business owners’ understanding.

“Much of our role as an association is to introduce people to IP rights,” Susanty said.

Raising this message at KRISTA InterFOOD brought the discussion of trade mark protection to business owners interested in expansion. At the event, Susanty also showed ASENSI partners a Ministry of Trade guide to franchising policy.

ASENSI’s appeal goes beyond avoiding disputes. It also presents trade mark protection as a step towards unlocking opportunities for licensing and franchising. IP rights are therefore directly relevant to business growth plans, rather than simply an administrative matter separate from commercial activity.

This educational approach is relevant to MSMEs because expanding a business requires knowledge beyond simply selling products. Owners need to understand both the business identity they intend to develop and the type of commercial relationship they plan to offer prospective partners.

Distinguishing partnerships from franchises

The importance of understanding different expansion models also featured in Kontan’s coverage on 6 November 2026. Franchise observer Djoko Kurniawan cautioned that not every business operating under a partnership arrangement can be classified as a franchise.

This distinction provides important context for ASENSI’s appeal. Trade mark protection is a fundamental concern, but a discussion about brands cannot replace an understanding of the commercial arrangement being proposed. MSMEs seeking to expand their networks need to consider these two issues separately.

The membership of the Indonesian Franchise Association (AFI) illustrates these different categories. AFI public relations representative Fredy Ferdianto said the association had around 85 members classified as franchises, while more than 200 fell into the business opportunity or non-franchise category.

These figures describe AFI’s membership, not the total number of businesses in Indonesia’s franchising sector. Nevertheless, the distinction reinforces why prospective franchisors and franchisees need to understand the business model under discussion, rather than assuming that every partnership offer is a franchise.

Preparing MSMEs for network expansion

AFI has also expressed support for helping local businesses develop into franchisors. In this context, ASENSI’s call for early attention to trade mark protection offers relevant groundwork for MSMEs with similar ambitions.

For the franchising community, the practical message is to place brand protection alongside readiness for business expansion. Owners should understand their business identity and the type of partnership they are offering before promoting opportunities to prospective partners.

Practical steps for MSMEs are to check the protection status of their trade marks, make use of IP education, and understand the differences between licensing, partnerships and franchising before offering network expansion opportunities to prospective partners.