Minister Of Trade Budi Invites Waralaba Business Actors To Participate In Business Matching Program

Minister of Trade Budi Santoso. (Photo: Doc. Ministry of Trade)

JAKARTA - Trade Minister Budi Santoso invites franchise business actors who are members of the Indonesian Franchise Association (AFI) to participate in business matching or business assessment held by the Ministry of Trade (Kemendag).

According to Budi, business matching can facilitate franchise business actors to find wider market opportunities abroad.

In addition, continued Budi, the participation of the service sector in the form of franchises will increase the diversity of commodities offered by the Ministry of Trade's business matching, which has been dominated by goods.

"Until now, there has been no franchise participating in the business matching of the Ministry of Trade. We must intensify the export of the service sector. So, if possible, under AFI, starting in May 2025 so that there will be franchises participating," Budi said in an official statement, Friday, April 25.

For your information, the business matching of the Ministry of Trade is part of one of the priority programs of the Ministry of Trade, namely the Expenditure Market Expansion. Business actors can contact representatives of Indonesian trade (perwadag) in 33 accredited countries, namely the Trade Attache and the Indonesian Trade Promotion Center (ITPC).

Business actors who want exports can present their commodities to perwadag through a pitching session. Then, the perwadag will find foreign buyers. If the tit for tat, Perwadag will hold a business matching session that brings together business actors with potential buyers in export destination countries.

Budi said the Ministry of Trade is committed to supporting the development of national entrepreneurship. According to him, franchises can be one of the main drivers.

Furthermore, Budi said franchises could provide easier access to start a business, offer standardized business systems, and provide ongoing support from franchise givers.

The number of entrepreneurs in a country holds an important key in an effort to strengthen the national economic foundation. Currently, Indonesia's entrepreneurship ratio is 3.4 percent of the total workforce," he said.

Meanwhile, continued Budi, in comparison, Malaysia and Thailand's entrepreneurship ratios are already more than 4 percent, while Singapore is 8.7 percent and the United States is 12 percent.

Our entrepreneurial ratio must be 10 to 12 percent. This franchise is one way to increase entrepreneurship ratio. We don't start from scratch, because through franchises, management and various related matters have gone well. The government and AFI are committed to continuing to grow franchises in the country and for export purposes," he said.

In 2024, continued Budi, the franchise sector has absorbed nearly 98,000 workers, recorded turnover of up to IDR 143.25 trillion, and managed more than 48,000 outlets, both owned by themselves and those that are traditional.

Several national franchises have expanded abroad. For example, Alfamart, Pak Gepuk Chicken Gembus, Babarafi Turkish Kebab, Taman Sari Royal Heritage Spa, and Ropi Ropi.

Meanwhile, AFI Chairman Anang Sukandar said the franchise association wanted to encourage local franchise businesses. In countries such as the United States, Australia, Malaysia, and Singapore, about 55 percent of franchise businesses are engaged in the food and beverage (mamin) sector.

This characteristic, according to Anang, shows a great opportunity for Indonesia to enter the franchise market at the global level.

"If we look at it, Indonesia has a great opportunity to develop a franchise business. There are ten types of typical Indonesian cuisine, I think it can be developed. I think we have quite a lot of opportunities. I urge entrepreneurs to pursue areas that can indeed be developed," said Anang.