Franchising in Indonesia is still early-stage: there are about 184 franchise outlets per million people, against roughly 1,000 in the Philippines, 2,050 in Japan and 7,300 in South Korea — even though the Philippines has lower income per head. Even so, the registered sector turned over about IDR 143 trillion (≈ USD 8.8 billion) across some 52,000 outlets in 2024. Information only.
How does Indonesia compare with its neighbours?
| Market | Outlets per million people | GDP per head |
|---|---|---|
| South Korea | ~7,300 | ~USD 36k |
| Japan | ~2,050 | ~USD 34k |
| Philippines | ~1,000 | ~USD 4.0k |
| Indonesia | ~184 | ~USD 4.9k |
Put simply, the Philippines has roughly five times as many franchise outlets per person as Indonesia, on a slightly lower income per head. South Korea has about forty times as many. The per-person figures are derived from association and ministry data. Information only.
How big is the sector already?
About IDR 143 trillion (≈ USD 8.8 billion) of turnover across some 52,000 registered outlets in 2024. Divided out, that is an average of roughly IDR 2.75 billion (≈ USD 170,000) a year per outlet — a simple average across very different businesses, to give a feel for scale. Information only.
What does it take to become a franchisor?
The rules sit in Government Regulation 35 of 2024 (PP 35/2024). As of 2026, you need:
- A business that has traded profitably for at least three years (down from five).
- Two years of audited accounts.
- A registered trademark.
- Written systems and operating procedures.
- An Indonesian-language disclosure document, given to the franchisee at least 14 days before signing.
The signed agreement is then registered for an STPW — the franchise registration certificate — which is now valid indefinitely. Verify the current requirements with Indonesian counsel.
If the rules are simpler, what holds operators back?
Usually money, more than rules. Every new outlet is paid for largely upfront — fees, fit-out, equipment, deposits and months of wages — before it takes its first sale. That is why proven operators often stall somewhere between their first site and their fifth.
See why operators struggle to open a second location.
Sources: Kementerian Perdagangan (Kemendag) 2025; International Franchise Association; Malaysian and Philippine franchise associations — per-capita figures derived. Not legal advice. General information about the Indonesian market, not legal, tax or financial advice.
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