Franchisers rush into Indonesia

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potato-corner1Franchise companies, especially from the ASEAN region, have been lured to Indonesia’s 240-million population, with not only its huge market for convenience stores and restaurants, but also other sectors.

According to the Malaysian Franchise Association, franchisers want to also expand into the healthcare, beauty and education. There are currently 20 Malaysian franchise brands operating in Indonesia, led by fast food chain Marrybrown.

From Singapore, there are at least 10 franchises present in the country, with ice franchiser Coolblog planning to open up by the end of 2013. From the Philippines, five franchises are already operating in Indonesia, which range from the retail to the service sector, such as Penshoppe, Potato Corner and Crystal Clear Water Store.

Meanwhile, Indonesian Franchise Association chairman Anang Sukandar said that Indonesia was indeed a huge market for everyone, but he was afraid franchising businesses at home would be dominated by foreign firms.

“We have less than 15 franchisors going global, but there are a lot more foreign franchisors coming in. I think lack of support from the government is still a problem for potential franchisors to expand their business abroad,” he was quoted as saying by the Jakarta Post.

As of 2012, there were more than 2,000 franchises operating in Indonesia, more than double from 2010. The estimated combined revenue totaled $11.74 billion, up 15 per cent up from a year earlier, according to statistics from the Indonesian Committee for Franchises and Licenses.

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Reading Time: 1 minute

Franchise companies, especially from the ASEAN region, have been lured to Indonesia’s 240-million population, with not only its huge market for convenience stores and restaurants, but also other sectors.

Reading Time: 1 minute

potato-corner1Franchise companies, especially from the ASEAN region, have been lured to Indonesia’s 240-million population, with not only its huge market for convenience stores and restaurants, but also other sectors.

According to the Malaysian Franchise Association, franchisers want to also expand into the healthcare, beauty and education. There are currently 20 Malaysian franchise brands operating in Indonesia, led by fast food chain Marrybrown.

From Singapore, there are at least 10 franchises present in the country, with ice franchiser Coolblog planning to open up by the end of 2013. From the Philippines, five franchises are already operating in Indonesia, which range from the retail to the service sector, such as Penshoppe, Potato Corner and Crystal Clear Water Store.

Meanwhile, Indonesian Franchise Association chairman Anang Sukandar said that Indonesia was indeed a huge market for everyone, but he was afraid franchising businesses at home would be dominated by foreign firms.

“We have less than 15 franchisors going global, but there are a lot more foreign franchisors coming in. I think lack of support from the government is still a problem for potential franchisors to expand their business abroad,” he was quoted as saying by the Jakarta Post.

As of 2012, there were more than 2,000 franchises operating in Indonesia, more than double from 2010. The estimated combined revenue totaled $11.74 billion, up 15 per cent up from a year earlier, according to statistics from the Indonesian Committee for Franchises and Licenses.

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