Leo Wisnu Susapto, Lita Palomita Siregar, Mahinda Arkyasa
Immediately after the issuance of the new Minister of Trade Regulation No. 07/M-DAG/PER/2/2013 on Partnership Development for Food and Beverages Franchise Businesses (Regulation) on 11 January 2013, some criticism has been raised.
Justinus D Juwono, Director of PT Fast Food Indonesia, asserted that the Regulation will be a hindrance to businesses because compliance and implementation of the Regulation is going to take time. Justinus is concerned that businesses may experience some losses during the adjustment to the Regulation requirements.
“I have not studied the Regulation yet, but I am certain that it will hinder business development,” Justinus stated to hukumonline, Thursday (14/2).
As a background, the Regulation limits the number of franchise outlets that can be established by food and beverages businesses—including restaurants, bars, and cafes—to 250 outlets at most.
The Regulation allows a business to have more than 250 franchise outlets under the condition that the additional outlets are either franchised to other parties or established through investment cooperation prioritizing partnership with local small-medium enterprises.
Furthermore, under the Regulation, businesses are obliged to utilize at least 80% domestic goods and equipment of the total goods and equipment used in the production activity. This obligation, however, can be excluded by the Minister of Trade based on a recommendation from an evaluation team.
Businesses who fail to comply with the Regulation requirements will be subject to sanctions in a form of a written warning, suspension of business activity, or revocation of franchise registration certificate.
(jt)
Leo Wisnu Susapto, Lita Palomita Siregar, Mahinda Arkyasa
Immediately after the issuance of the new Minister of Trade Regulation No. 07/M-DAG/PER/2/2013 on Partnership Development for Food and Beverages Franchise Businesses (Regulation) on 11 January 2013, some criticism has been raised.
Justinus D Juwono, Director of PT Fast Food Indonesia, asserted that the Regulation will be a hindrance to businesses because compliance and implementation of the Regulation is going to take time. Justinus is concerned that businesses may experience some losses during the adjustment to the Regulation requirements.
“I have not studied the Regulation yet, but I am certain that it will hinder business development,” Justinus stated to hukumonline, Thursday (14/2).
As a background, the Regulation limits the number of franchise outlets that can be established by food and beverages businesses—including restaurants, bars, and cafes—to 250 outlets at most.
The Regulation allows a business to have more than 250 franchise outlets under the condition that the additional outlets are either franchised to other parties or established through investment cooperation prioritizing partnership with local small-medium enterprises.
Furthermore, under the Regulation, businesses are obliged to utilize at least 80% domestic goods and equipment of the total goods and equipment used in the production activity. This obligation, however, can be excluded by the Minister of Trade based on a recommendation from an evaluation team.
Businesses who fail to comply with the Regulation requirements will be subject to sanctions in a form of a written warning, suspension of business activity, or revocation of franchise registration certificate.
(jt)