{
    "success": true,
    "data": {
        "id": 1222477,
        "msgid": "despite-crisis-local-franchise-market-still-growing-1447893297",
        "date": "2002-11-30 00:00:00",
        "title": "Despite crisis, local franchise market still growing",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Despite crisis, local franchise market still growing The Jakarta Post, Jakarta Despite the economic crisis, the local franchise business grew by an average 13.2 percent over the past six years, while the foreign franchise business contracted by an average 3.6 percent during the same period, a consultant said. \"This ...",
        "content": "<p>Despite crisis, local franchise market still growing<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>Despite the economic crisis, the local franchise business grew<br>\nby an average 13.2 percent over the past six years, while the<br>\nforeign franchise business contracted by an average 3.6 percent<br>\nduring the same period, a consultant said.<\/p>\n<p>\"This ... creates optimism that the local franchise business<br>\nwill be able to steadily grow and significantly control the<br>\ndomestic market,\" franchise consultant Amir Karamoy of Ak &amp;<br>\nPartners said in the firm's year-end review made available to The<br>\nJakarta Post on Friday.<\/p>\n<p>It noted, however, that despite the growth, about 70 percent<br>\nof local franchisors had yet to have an \"established concept of<br>\nbusiness or a proven system of business operation.\"<\/p>\n<p>\"This is shown by the fact that many of their franchisees have<br>\nstopped operating,\" Amir said, adding that the number of outlets<br>\ncarrying the brands of local franchises had dropped to 237 today<br>\nfrom about 400 in 1999.<\/p>\n<p>This indicated that many local firms were not yet fully<br>\nprepared to enter the franchise business, he said.<\/p>\n<p>According to Amir, the success rate of local franchise<br>\nbusinesses averaged 30 percent, compared to 92 percent in<br>\ndeveloped countries.<\/p>\n<p>Investors should be extra-careful in selecting local franchise<br>\nbrands, while local firms should establish a good business system<br>\nbefore offering their brands to potential franchisees, Amir<br>\nexplained.<\/p>\n<p>He said that the franchise business in Indonesia had been<br>\npioneered by foreign franchisors. This was then imitated by local<br>\nfirms, including state-owned companies such as securities firm PT<br>\nDanareksa, mail carrier PT Pos Indonesia and oil and gas company<br>\nPT Pertamina.<\/p>\n<p>The entry of state-owned companies into the franchise business<br>\nhad support the development of the business in Indonesia as they<br>\nwere able to set a good example for local private sector firms<br>\nwho also wanted to enter the business, Amir said.<\/p>\n<p>Given the continued uncertainties in the country's social and<br>\npolitical life, Amir predicted that foreign investors would<br>\ncontinue to be reluctant to set up the business in the country<br>\nnext year, but they might be interested in entering the country's<br>\nfranchise market as the risks were lower in this sector.<\/p>\n<p>He noted that the number of foreign franchisors, which<br>\ncontracted by 40 percent at the peak of economic crisis between<br>\n1997 and 1999, grew 10.9 percent between 1999 and 2002, when the<br>\neconomic crisis had abated somewhat.<\/p>\n<p>\"This is already close to the growth rate of local<br>\nfranchisors. It is thus projected that in 2003, foreign<br>\nfranchisors will grow as fast as local franchisors,\" he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/despite-crisis-local-franchise-market-still-growing-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}