Indonesia Promotes Franchise Sector to Boost SMEs and Entrepreneurship

  • 08 Mei 2026 15:12 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Indonesia is promoting its franchise sector as a strategic pathway to strengthen small and medium-sized enterprises (SMEs) and expand entrepreneurship. The initiative was highlighted at the opening of Franchise & License Expo Indonesia (FLEI) 2026 in Jakarta on Thursday, 8 May 2026.

Vice Trade Minister, Dyah Roro Esti Widya Putri, said Indonesia’s entrepreneurship ratio currently stands at around 3.29 percent of the total workforce. She noted the country needs to raise the figure to at least 10 to 12 percent to support its ambition of becoming a developed economy.

Roro said franchising offers an effective business model because it is standardized and easier to predict for new entrepreneurs. “Franchising is an effective model to accelerate the creation of new entrepreneurs,” she said.

She added that the model is inclusive and suitable for a wide range of people, including young innovators, homemakers, and retirees seeking productive new ventures. According to her, FLEI 2026 provides fresh insights into current business trends and market opportunities.

PT Pameran Peluang Bisnis President Director, Royanto Handaya, said the exhibition has evolved significantly since it was first launched in 2002. “This achievement is not only about numbers, but also reflects the relevance of franchising in strengthening Indonesia’s economic structure,” he said.

Chairwoman of the Indonesian Franchise and Licensing Association (WALI), Levita Ginting Sumpit, said the franchise industry was among the fastest sectors to recover after the pandemic. She reported that the sector generated Rp143.25 trillion in turnover in 2024 and employed around 98,000 workers.

Roro also urged businesses to comply with legal requirements, including obtaining a Franchise Registration Certificate before using franchise labels in promotions. She advised the public to apply the “2L” principle when reviewing offers, meaning Legal and Logical.

Business operators welcomed the expo as a platform to expand partnerships and attract investors. Officials expressed optimism that FLEI 2026 would help local SMEs scale up, create jobs, and contribute more strongly to Indonesia’s long-term economic growth.

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