Franchise Business Indonesia 2026 | Complete Guide

Q: Can foreigners own a franchise in Indonesia?

Yes, through a PT PMA. Foreign franchisors must register their franchise with Kemendag and obtain STPW. Foreign franchisees also need PT PMA. Some sectors have local partnership requirements.

Q: What is the STPW franchise certificate?

STPW (Surat Tanda Pendaftaran Waralaba) is mandatory for all franchise operations in Indonesia. Franchisors must register within 6 months of signing the franchise agreement. Penalty for non-registration: IDR 100 million fine.

Q: Are there local content requirements for franchises?

Yes. Indonesian franchise regulations require 80% local materials/ingredients for F&B businesses and prioritizing local suppliers. This is enforced through periodic inspections and LKPM reporting.