Franchises Contribute to Indonesia’s Economy, Creating Thousands of Jobs

The franchise industry in Indonesia continues to grow rapidly, playing a crucial role in the national economy by creating jobs and driving consumer spending.

According to the Ministry of Trade (Kemendag), as of February 2025, there are 311 active franchisors in Indonesia, consisting of 157 local franchises and 154 foreign franchises.

This data was revealed by Minister of Trade Budi Santoso during the launch of the Indonesia Licensing and Franchising Expo (ILFEX) 2025 at the Kemendag Auditorium in Jakarta on Wednesday (March 12, 2025). He explained that there are currently 34,503 outlets directly managed by owners, while 17,786 outlets are franchised to business partners.

The food and beverage (F&B) sector continues to dominate the franchise industry in Indonesia, accounting for 47.77% of the market. Other growing sectors include beauty services, non-formal education, and retail.

"As of February 2025, there are 157 local franchisors and 154 foreign franchisors operating in Indonesia," said Minister Budi Santoso, quoted on Sunday (March 16, 2025).

He also emphasized the significant economic impact of the franchise industry, particularly in terms of job creation and business revenue. According to business activity reports from 2024, the franchise sector has absorbed 97,872 workers and generated Rp143.25 trillion in total revenue.

Several local franchise brands have even successfully expanded into international markets, including Alfamart, Ayam Gepuk Pak Gembus, Kebab Turki Baba Rafi, Taman Sari Royal Heritage, and Roti Ropi from Klaten.

The Success Story of Alfamart’s Founder: From Local Retail to Billionaire

As one of Indonesia’s largest retail chains, Alfamart has become a go-to destination for daily necessities. The minimarket currently operates 20,000 stores, both company-owned and franchised.

Behind Alfamart’s success is Djoko Susanto, the founder and owner. His achievements in the retail business have earned him a spot among Indonesia’s wealthiest individuals.

According to the Forbes 50 Richest Indonesians list in 2023, Djoko ranked 12th, with a total net worth of US$4.35 billion. His wealth has grown significantly compared to 2021, when his assets were valued at US$1.9 billion.

The government remains committed to supporting the growth of the franchise industry, including through ILFEX 2025, which serves as a platform to promote local franchises and help them expand their reach.

"We want Indonesian franchises and licensing businesses to enter export markets and compete globally," concluded Minister Budi Santoso.