Govt calls on local franchisors to tap Indonesia’s expanding market

JAKARTA : 18 Nov : The Government hopes more local franchisors will grab business opportunities in Indonesia, which offers a bigger market for the franchise business.

Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said at present, 18 local franchise products from Malaysia were marketed in Indonesia, with food and beverages comprising the bulk of it.

“The number of local franchise products to Indonesia is growing and I hope the figure will continue to become bigger,” he told reporters after the launch of Malaysia-Indonesia Business Expo (MIBEX) 2011, organised by the ministry.

He said the Government was organising the event to push more local franchisors to do business in Indonesia.

At the same time, Ismail Sabri said the Government was hoping that more Indonesian franchisers would invest in Malaysia through the MIBEX platform.

“I think the perception of Malaysia having a small population and (therefore a) smaller market compared with bigger countries is not true.

“There are about three to four million Indonesian workers in Malaysia who are waiting to have their own local (Indonesian) food and I believe this is the kind of opportunity that the Indonesian franchisors should go after,” he said.

MIBEX 2011 saw 50 exhibitors, comprising 43 from Malaysia and seven from Indonesia, participating in the the three-day event from Nov 17-19.

On the Malaysian side, the exhibitors include six direct selling companies,16 franchisors, five small and medium enterprises, Tourism Malaysia, Malaysia Franchise Association and Government agencies.

During the event, a business forum between two countries was also conducted to enhance networking.

Source : The STAR