Trade Minister: Franchising is a fast way to start a business
Jakarta (ANTARA) - Trade Minister Budi Santoso is encouraging the development of the franchise business model as a way to accelerate business growth while expanding the reach of Indonesian products and services into international markets.
Budi said the franchise business has advantages because its management system, production, and market share are already established, making it easier for aspiring entrepreneurs to start a business more quickly.
“So we continue to want to develop this franchise business model. Because actually, when for example you want to start a business that can be up and running quickly, one of the options is a franchise. Because the management, production and so on, its market share is already within reach,” Budi said at the opening of Pak Gembus Spot (+), Monday.
According to him, franchising is an attractive choice for people who want to become entrepreneurs because the business model is already proven.
However, Budi stressed that products to be franchised must also meet strict requirements so that their quality is maintained.
He explained that these strict requirements are important to provide assurance to franchisees so they can run the business properly and sustainably.
“The hope is that there is a guarantee when someone joins a franchise for a particular product, so that the business they join or the franchisee can run their business well,” he said.
Budi said the government continues to encourage the development of franchise businesses as part of efforts to sustain national economic activity. According to him, the more businesses that grow through the franchise system, the greater their contribution to economic growth.
Beyond the domestic market, the Ministry of Trade is also working to expand Indonesian franchise networks into foreign markets through various promotional programmes and business matching.
The government routinely promotes Indonesian franchise brands in various exhibitions abroad, including in Singapore. The Ministry of Trade also runs programmes to expand the presence of Indonesian restaurants overseas through franchise schemes.
According to Budi, many Indonesian restaurants abroad are still family-managed, making them vulnerable to closure when the manager is no longer active. Therefore, the franchise model is seen as a solution to maintain business continuity while expanding business networks.
Furthermore, Budi said Indonesian trade representatives abroad are tasked not only with promoting goods exports but also with seeking investors and franchise partners in destination countries.
“The task of our representatives is to seek investment, to find franchisees there. That is what we assign them. Our representatives do not only talk about exporting goods, but also services,” Budi added.