Fitri Novia Heriani, Andin Aditya Rahman
The recently issued Minister of Trade Regulation No. 07/M-DAG/PER/2/2013 on Partnership Development for Food and Beverage Franchise Businesses (Regulation) has been raising criticism from various sectors, especially from the House of Representatives (House).
Aria Bima, Vice Chairman of Commission VI of the House, stated to hukumonline, Tuesday (19/2) that the issued Regulation is different from its earlier draft. Aria wondered why the Regulation added investment cooperation as an option.
“Why did the issued Regulation add the investment cooperation option?” asked Aria.
The Vice Chairman stated that he is concerned that this provision will be exploited by foreign food and beverage franchise businesses and that foreign businesses will gain control over the franchise industry.
Aria did not oppose the Regulation as it relates to domestic food and beverage franchise businesses.
“Implementation of the [Regulation] on domestic food and beverage franchise businesses is not much of a problem, as domestic food and beverage franchises need the freedom to grow,” Aria argued.
He explained that it is foreign control of the franchise industry that must be restricted, while domestic franchises must be supported in their expansion throughout Indonesia.
“Commission VI will request the Minister of Trade to limit foreign franchises with a Minister of Trade Regulation, which will be included in the Bill on Trade,” he concluded.
The Regulation itself limits franchise outlets that can be established by food and beverage businesses to 250 at most. Additional outlets must be franchised to other parties or established through investment cooperation.
(jt/hot)
Fitri Novia Heriani, Andin Aditya Rahman
The recently issued Minister of Trade Regulation No. 07/M-DAG/PER/2/2013 on Partnership Development for Food and Beverage Franchise Businesses (Regulation) has been raising criticism from various sectors, especially from the House of Representatives (House).
Aria Bima, Vice Chairman of Commission VI of the House, stated to hukumonline, Tuesday (19/2) that the issued Regulation is different from its earlier draft. Aria wondered why the Regulation added investment cooperation as an option.
“Why did the issued Regulation add the investment cooperation option?” asked Aria.
The Vice Chairman stated that he is concerned that this provision will be exploited by foreign food and beverage franchise businesses and that foreign businesses will gain control over the franchise industry.
Aria did not oppose the Regulation as it relates to domestic food and beverage franchise businesses.
“Implementation of the [Regulation] on domestic food and beverage franchise businesses is not much of a problem, as domestic food and beverage franchises need the freedom to grow,” Aria argued.
He explained that it is foreign control of the franchise industry that must be restricted, while domestic franchises must be supported in their expansion throughout Indonesia.
“Commission VI will request the Minister of Trade to limit foreign franchises with a Minister of Trade Regulation, which will be included in the Bill on Trade,” he concluded.
The Regulation itself limits franchise outlets that can be established by food and beverage businesses to 250 at most. Additional outlets must be franchised to other parties or established through investment cooperation.
(jt/hot)