ARTICLE
22 January 2013

New Franchise Regulations In Indonesia: A Fine Line Between Stimulating The Local Market And Protectionism

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Fieldfisher is a European law firm known for its market-leading practices in technology, financial services, energy, and life sciences. With a focus on client collaboration, innovation, and social responsibility, the firm integrates cutting-edge legal technologies and provides tailored solutions. Fieldfisher’s global presence spans Europe, the US, China, and international partner firms, allowing seamless cross-border services. Recognized for excellence, Fieldfisher holds high rankings in dispute resolution, M&A, and IP, and has a strong commitment to environmental, social, and governance (ESG) leadership. The firm operates with over 1,800 professionals across 23 offices in 12 countries.

Indonesia's recent economic growth and the increasing wealth and size of the local market has seen a growing demand for foreign brands and a corresponding increase in international businesses entering the market through franchising.
Indonesia Corporate/Commercial Law

Indonesia's recent economic growth and the increasing wealth and size of the local market has seen a growing demand for foreign brands and a corresponding increase in international businesses entering the market through franchising. Franchising in Indonesia has been regulated since 1997. In recent years, foreign and domestic franchise systems have spread across a number of sectors, including retail, F&B, healthcare and the services sector. All foreign and domestic franchisors are required to register with the authorities for a franchising licence prior to appointing a local franchisee. However, recent changes to the franchise regulations contain some controversial and prima facie protectionist rules which may have an adverse impact on foreign brands wishing to do business in this important market.

To read the full article; New franchise regulations in Indonesia, please click here.

This article was first published in  International Journal of Franchising Law - Volume 11 – Issue 1 – 2013

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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