Local Franchise Brands Overtake Foreign Brands in Indonesian STPW Registrations by August 2026

The number of Franchise Registration Certificates (Surat Tanda Pendaftaran Waralaba, or STPW) for local brands exceeded that for foreign brands by August 2026. Indonesia’s Ministry of Trade recorded 169 STPW registrations for local brands, compared with 163 for foreign brands. Highlighted in coverage of the FLEI Business Show 2026, the figures point to a shift in the composition of Indonesia’s registered franchise brands, while drawing attention to the importance of stronger business standards.

Local brands lead in registration numbers

According to a SINDOnews report published on 12 October 2026, the Ministry of Trade’s records showed that local brands held six more STPW registrations than foreign brands. The same report noted that foreign brands had accounted for around 70 per cent a decade earlier.

This comparison provides context for the changing position of local brands within Indonesia’s franchise sector. Whereas foreign brands previously held the larger share, the figures up to August 2026 put local brands ahead in the number of STPW registrations reported.

However, it is important to understand what is being measured. The figures of 169 and 163 represent STPW registrations, not outlet numbers, sales revenue or customer numbers. A lead in registrations therefore does not automatically mean that local brands dominate national franchise turnover or outlet networks.

This distinction matters for prospective franchisees. Registration data can be a starting point for understanding the mix of brands, but it cannot replace due diligence on individual businesses. Both local and foreign brands still need to be assessed using business information relevant to a prospective franchisee’s investment plans.

Stronger standards are the central message

The figures emerged in the context of the 27th FLEI Business Show at NICE PIK 2 in Tangerang, Indonesia. Organised by Panorama Media, the exhibition ran alongside the ninth Café & Brasserie Expo Indonesia (CBE) and closed on 11 October 2026.

Opening the exhibition on Friday, 9 October 2026, Trade Minister Budi Santoso urged local brands to keep strengthening their business standards so they could compete in both domestic and global markets. He also emphasised the role of franchising in widening business opportunities and stimulating domestic trade.

The emphasis on business standards provides important context for local brands’ stronger position in the registration figures. Growth is not simply a question of how many brands are registered, but also of how brand owners prepare their businesses to operate with franchise partners.

For prospective franchisees, that message translates into practical questions: how are operating standards explained, what support does the brand owner provide, and how is service quality maintained? These are useful due diligence questions, not grounds for assuming that all registered brands are equally ready to support franchisees.

Brands and suppliers under one roof

FLEI and CBE serve different but complementary purposes. FLEI brings franchise brand owners together with prospective franchisees and investors. CBE, meanwhile, connects café, restaurant and bar operators with suppliers.

That connection matters because choosing a business concept cannot be separated from its operational requirements. Investors who find a concept at FLEI also need suppliers and equipment, which they can explore at CBE. Discussions about franchise opportunities therefore sit alongside practical considerations about running the business.

The opening was also attended by representatives of the Ministry of Trade, the Ministry of Micro, Small and Medium Enterprises, the Ministry of Creative Economy and the Indonesian Chamber of Commerce and Industry (KADIN Indonesia). Organisations involved in the event included the Indonesian Franchise and Licensing Association (WALI), the Indonesian Coffee Association (ASKI), the Indonesian Retailers and Shopping Centre Tenants Association (HIPPINDO), and the Indonesian Café and Restaurant Entrepreneurs Association (APKRINDO).

The participation of these organisations illustrates that the event extended beyond brand offerings. It also brought together the franchise sector, food and beverage businesses, retailers and business suppliers.

Understand the figures before choosing a franchise

Local brands’ lead in STPW registrations is a development worth noting, but it is not a ranking of investment suitability. Aggregate data does not reveal the cost of opening an outlet, its working capital requirements or a particular location’s ability to generate sales.

Prospective franchisees should therefore separate their assessment into two stages. First, use national data to understand how the franchise sector is changing. Second, examine each brand’s offering through documents, cost breakdowns, details of support and evidence of supply arrangements that can be reviewed directly.

Practical step: treat STPW data as context, not as the sole reason to choose a brand. Before entering into a franchise agreement, check the registration status, the detailed obligations, and the operating standards and support actually on offer.