Open Job Field, Ministry of Trade Accelerates Development of Local Franchises

JAKARTA - The Ministry of Trade (Kemendag) continues to encourage the development of local franchise businesses as one of the efforts to expand business opportunities and create new jobs.

This step is carried out through strengthening innovation, business assistance, to supporting the expansion of local brands to the international market.

Trade Minister Budi Santoso said innovation was an important factor for franchise business actors in creating business opportunities and employment.

"We see franchise innovation, especially in the culinary sector, as a strategic step to respond to changes in consumer preferences. This step also strengthens the competitiveness of businesses in the midst of increasingly competitive culinary industry competition. The Ministry of Trade will continue to encourage all local franchise brands to innovate and expand their business wings," said Budi when inaugurating Pak Gembus SPOT (+) in Tebet, South Jakarta, Monday, June 22.

Budi said the Ministry of Trade was committed to encouraging national entrepreneurship growth through the development of franchise businesses and partnerships, especially for local brands that have the potential to continue to grow.

According to him, franchises are one of the business models that have proven to be effective in producing new entrepreneurs because they offer a proven business system so that business risks become more measurable.

"Franchises are one of the business models that have proven effective in encouraging the birth of new entrepreneurs. Through a proven system, franchises provide opportunities for people to start businesses with more measurable risks and greater success opportunities," he said.

Budi said that Indonesia's entrepreneurship ratio is currently still in the range of 3.29 percent of the total workforce.

Meanwhile, to become a developed country, the ratio needs to be increased to reach 10 to 12 percent.

One of the local franchises that is considered to have successfully utilized innovation is Pak Gembus Fried Chicken.

This year, the company launched a new Pak Gembus SPOT (+) store concept that carries a modern concept, fast service, and menus that follow urban culinary trends.

Currently, Pak Gembus Chicken Gepuk has 460 outlets in Indonesia and 102 outlets in Malaysia while still using Indonesian-origin seasoning.

In Malaysia, the restaurant chain is also listed in The Malaysia Book of Records for five categories, including as the first halal certified "Ayam Gepuk" brand and the largest ayam geprek restaurant chain in the country.

Budi said that the Ministry of Trade's support for the development of local franchises was also realized through the National Franchise Assistance Program (PWN) which took place in 2021-2025. The program aims to increase the capacity of business actors through strengthening systems, management, and business operations.

Pak Gembus' Ayam Gepuk is one of the alumni of the PWN Program who successfully obtained the Franchise Registration Certificate (STPW) on December 3, 2021.

In addition to building a business ecosystem in the country, the Ministry of Trade is also committed to helping local franchise players expand into global markets through facilitation of promotions, trade diplomacy, and provision of strategic market information in various countries.

Meanwhile, the founder of Ayam Gepuk Pak Gembus Rido Nurul Adityawan hopes that the government will continue to be a strategic partner for franchise business actors through regulatory ease, access to financing, and business development assistance.

"Our hope is that the government continues to be a strategic partner for local franchise business actors, both through regulatory ease, access to financing, and business development assistance. Because for us, franchises are not just a business, but also a way to create opportunities, open up employment, and drive the nation's economy," said Rido.