Recent Changes to Indonesia’s Franchise Regulation: Opportunities & Challenges Ahead

Published on Nov 22, 2024

Indonesia’s updated franchise rules present a mixed bag for franchisors. The good news is that the requirement to demonstrate profitability has been shortened from five years to three, making it easier for new franchisors to enter the Indonesian market. However, these changes also come with new obligations for documentation and continuous support to franchisees, which could add operational complexity.