Ownership of company-owned outlets is limited to 150 outlets but there are exemptions for franchisors and franchisees.

Regulatioon 53 aims to protect the local market from foreign franchises and clarifies franchise business arrangements.

Indonesia's recent economic growth and the increasing wealth and size of the local market has seen a growing demand for foreign brands and a corresponding increase in international businesses entering the market through franchising.

The Draft Bill on Trade covers ten main issues in all aspects of trading which are currently under separate regulations,.

Like many countries Indonesia has special franchising rules. Some are common, others more localized.

Regulation 07 specifically regulates the franchising partnerships of Food and Beverages Services Business Activities.

Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising ("GR 35/2024"), on September 2, 2024.

International franchisors are increasing looking at Indonesia as an attractive market in which to establish their brand.

Indonesia's recent economic growth and the increasing wealth and size of the local market has seen a growing demand for foreign brands.

Rules for franchising in Indonesia were first published in 1997 through a government regulation and a ministerial decree, which was subsequently amended several times.

Regulation 53 prohibits franchisors appointing franchisees with whom there is a direct or indirect control relationship.

The Indonesian government has introduced Government Regulation No. 35 of 2024 regarding Franchises ("GR 35/2024"), which came into force on September 2, 2024...

Significant IP developments combined with political elections made 2024 an important year forthe country, explain Nick Redfearn, Arifia Fajra and Kin Wah Chow of Rouse.

In September 2024, Indonesia enacted Government Regulation ("GR") No. 35 of 2024 on Franchise ("GR 35/2024"), which replaces the previous regulation GR No. 42 of 2007 on Franchise ("GR 42/2007").

What is the legal definition of "franchise" pursuant to the relevant laws and regulations in your jurisdiction? Does your jurisdiction provide specific definition for "franchise"?

This article is the first in CNPUpdate's new Indonesia Investment Updates series and aims to provide you with a general overview and the laws and regulations governing foreign investments into Indonesia.

Franchising Comparative Guide for the jurisdiction of Indonesia, check out our comparative guides section to compare across multiple countries