Indonesia Trade Minister promotes local franchises to youth and global markets

Indonesian Minister of Trade Budi Santoso is encouraging the younger generation to enter the entrepreneurship sector through the franchise business model. Speaking at the Franchise & License Expo Indonesia (FLEI) 2026, Santoso noted that franchises provide a proven business template that simplifies the process for beginners.

Santoso highlighted the potential of local franchises, such as culinary businesses like bakso and soto, which often lack the high-level promotion seen in foreign brands. He emphasized the need to strengthen the recognition of local brands to compete more effectively with international competitors.

To support global expansion, the Ministry of Trade is utilizing the ‘Rasa Rempah Indonesia’ (S’RASA) program, supported by 46 Indonesian trade representatives across 33 countries. The ministry also facilitates business matching sessions to connect local franchise operators and MSMEs with international buyers. In the first eight months of 2026, these sessions reached a transaction value of USD 346.99 million.

Data from the Indonesian Franchise and Licensing Association (WALI) shows the national franchise industry recorded a turnover of Rp 143.25 trillion in 2024 and employs approximately 98,000 people. The Ministry of Trade reported a 6% growth in the sector in 2025 and has set a growth target of 7% for 2026.