Indonesia's franchise market offers growth for Malaysian brands
JAKARTA: Indonesia's rapidly expanding franchise industry presents significant growth opportunities for Malaysian businesses seeking to strengthen their regional footprint, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Indonesia, with a population exceeding 270 million and a growing middle class, is now recognised as one of the most dynamic and strategic markets for franchising in Southeast Asia.
'Franchising is a proven model for entrepreneurship and job creation,' he said in a statement on Monday after attending a networking luncheon with key Indonesian franchise industry players as part of his three-day official visit.
'I believe Malaysia and Indonesia can continue to drive inclusive economic growth through deeper franchise collaboration, while building a more resilient and competitive regional economy,' Ahmad Zahid said.
He also highlighted that the food and beverage sector continues to lead franchise growth in Indonesia, with Malaysian brands such as OldTown White Coffee gaining a solid foothold alongside regional giants like KFC and Chatime.
In the education and training sector, Ahmad Zahid said Malaysian names such as Smart Reader Kids and Global Art have made meaningful contributions, reflecting the shared emphasis both nations place on lifelong learning.
Beyond that, he said Malaysian brands have also made successful inroads in retail, fashion, and health and beauty, riding on the wave of rising consumer demand in urban centres across Indonesia.
'Brands such as Bonia are now familiar names in Indonesian malls, while our wellness and lifestyle offerings align well with emerging trends among youth and women,' said Ahmad Zahid.
He also praised the ongoing collaboration between the Malaysian Franchise Association (MFA), Indonesia's Asosiasi Franchise Indonesia (AFI), and Perhimpunan Waralaba dan Lisensi Indonesia (WALI).
These partnerships, he said, have led to impactful joint initiatives such as the adaptation of Malaysia's Franchise Act for the Indonesian context, joint participation in international exhibitions, and the organisation of educational webinars and workshops.
Ahmad Zahid stressed that the Malaysia External Trade Development Corporation (MATRADE), working alongside MFA, continues to play a key role in driving Malaysian franchise expansion through strategic business matchmaking and exhibition support.
'These efforts not only create new pathways for Malaysian businesses abroad, but also strengthen Malaysia-Indonesia people-to-people and commercial ties,' he said.
The Deputy Prime Minister's official visit to Indonesia concludes on Tuesday.
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