Franchise Business Become a Trend in Indonesia

Valid until 31 January 2015 (unless noted)

Franchise business become a trend in Indonesia. Yup, starting a franchise business (I meant buy franchise business), this is an ideal option to start your business especially if you don’t have any product / service yet to sell for your customers. You know that unemployment became a problem for every country at this time. Not only in the United States, high unemployment also experienced Indonesia and other countries around the world. For example, in May, Canada experienced the highest level of unemployment in the last 11 years. This condition occurs over a number of manufacturers cut the number of workers due to recession. Back to Indonesia, the limited employment opportunities especially in the midst of economic conditions that are uncertain, make business with the franchise will soon become a trend in Indonesia. For business owners, franchise systems make the investment to expand the business to be more effective and efficient. For franchise buyer, they can start their business immediately, they just need some budget, set the location, and setting up human resources.

In the next upcoming years, franchise concept will become a business trends in Indonesia. Franchise business already started now, such as minimarket, educational institutions and culinary. I live in Yogyakarta, Indonesia, and I already see many franchise affiliates, especially culinary franchise. One of problem for franchise businesses in Indonesia is the bank interest rates. Bank interest rates are still too high so it will be a burden to start developing franchise business. It would be better if the bank interest rates can be cut, as Malaysia provides discounted 50 percent interest, especially for franchise businesses.

in the last five years, the growth of franchises continue to increase as people start realizing that franchise can improve the economy and create jobs. Many people who jobless or does not have any particular expertise begin to start their own small businesses. Based on the data (from Kompas.com), the growth of franchises in Indonesia in the last five years, franchise in 2005: foreign 237 and local 129, in 2006: foreign 220 and local 230, in 2007: foreign 250 and local 450, in 2008: foreign 255 and local 600, and last year 2009: foreign 260 and local 750.