Heaptalk, Jakarta — The trend of licensing and franchising business in Indonesia reportedly experienced a significant increase year by year. According to the Chairman of the Indonesian Licensing Association (ASENSI) Susanty Widjaya, the awareness of registering Intellectual Property Rights (IPR) has enhanced significantly since 2019, which was proven by the increased number of registered licenses.
In 2022, the registered brand enhanced exponentially from 72,211 registered licenses to over 2 million registered licenses. Perceiving the enthusiasm for this industry, ASENSI, together with International Multi Expo Indonesia (IMEI) organized the 3rd Indonesia Licensing Expo (ILE) 2023 on October 11th-14th at JIExpo Kemayoran Jakarta.
On the opening ceremony of ILE 2023, the CEO of IMEI, Daud Salim, conveyed, “The event is participated by local and international f&b businesses. I believe that this event is a good initial step to drive the industry, and in 2024, this event will be bigger and fantastic.” (10/11)
Moreover, Susanty, on the opening ceremony of ILE 2023 explained that the growth of Indonesia’s economy beats the expectation by hitting 5.17% in Q2. The Consumer Confidence Index (CCI) also increased to 121.7. By organizing ILE 2023, Susanty hopes the growth and the awareness of licensing and franchising can escalate.
“We invite society to rise up together. We hope the national economy can fully recover, and the franchise owner can utilize this moment to leverage their brand awareness,” stated Susanty.
Regarding the business potential, the Director of Business Nurture on Domestic Trade, the Ministry of Trade, Septo Soepriyatno, in his opening remarks, conveyed, “Based on Franchise Activity Report 2021, about 31,188 outlets have been operated and absorbing 51,670 workforces. This industry contributed an earning of Rp 26.5 trillion with the local brand growth of 40% compared to 2020.”
He, further, conveyed that licensing is the initial measure to achieve franchise, and franchise is a solution to assist the new company in starting their business safely. As of September 2023, the Ministry also recorded a total of 143 domestic franchises and 137 international franchises. This number reportedly experienced an escalation of 5%.
