By MAKARIM & TAIRA S.
A. Introduction
For many years Indonesia did not specifically regulate
franchising activities. This has been due partly to the fact that
franchising is a relatively new concept of business in Indonesia
and due partly to the absence of any need to regulate what was not
seen as a threat to indigenous entrepreneurs.
With Indonesia's recent economic growth and the increasing
size and wealth of the local market, franchising has expanded
rapidly, not only among foreign companies, but also, albeit to a
lesser extent, with local franchisors. This growth has spread
outside the traditional franchise areas of restaurants and retail
and has now reached such diverse sectors as health centres,
printing services, dry cleaning and travel agencies.
