Deputy Trade Minister: Indonesia's Entrepreneurship Ratio at 3.29%, Needs to Reach 10% to Become Developed Nation
JAKARTA – Deputy Trade Minister Dyah Roro Esti Widya Putri highlighted the importance of young entrepreneurs and strengthening the local franchise ecosystem as key pillars for accelerating national economic growth towards Indonesia’s Golden 2045. Current entrepreneurship ratio is 3.29% of the workforce, needing to reach 10-12% to become a developed nation, she said during the opening of the Info Franchise and Business Concept (IFBC) 2026 exhibition in Bandung, West Java.
“Expanding business opportunities is crucial as franchising is an effective business model to accelerate new entrepreneurs. Franchising is standardised and easily replicable. Therefore, we need to enhance support for entrepreneurship to sustain economic growth,” she stated in a written statement on Saturday (May 30, 2026).
Indonesia’s economy in Q1 2026 showed solid performance with 5.61% year-on-year growth, driven primarily by household consumption at 54.36%. West Java province recorded 5.79% growth, reflecting positive dynamics supported by agriculture, forestry, and fisheries sectors. According to the Ministry of Trade’s data on Franchise Registration Certificates (STPW) up to April 2026, 165 domestic and 162 foreign franchisors have been issued STPW.
Bandung, as West Java’s economic hub, has significant potential to support entrepreneurship development in trade, industry, and tourism sectors, expected to create diverse entrepreneurs to bolster national economic development.
The Ministry of Trade has set three priority programs: Domestic Market Security, Export Market Expansion, and Local to Global. Deputy Trade Minister Roro welcomed the IFBC 2026 Bandung event as aligned with these priorities, especially domestic market security and fostering entrepreneurship.
“We welcome the IFBC 2026 Bandung event and encourage franchise entrepreneurs to not only dominate the domestic market but also go global by utilising facilities from 25 Trade Attachés, Commercial Consulates, and 19 Indonesian Trade Promotion Centres (ITPC). Business matching facilities can help expand networks and grow businesses,” she added.
Deputy Trade Minister Roro also urged exhibitors to ensure they have STPW before using the term “Franchise” or logo on brochures, websites, social media, or contracts. She advised the public to be cautious and prudent when choosing business offers using the 2L principle: Legal and Logical.
“When deciding on a franchise, consider the 2Ls: legal and logical. We hope the public does not be lured by unrealistic guaranteed profits or risk-free claims. In reality, every business has its own dynamics and risks,” she concluded.