You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 26, 2024

Indonesia Issues New Franchise Regulation

Subscribe to Updates

Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising (“GR 35/2024”), on September 2, 2024.

Franchising in Indonesia was previously governed by Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”), along with an implementing regulation, Ministry of Trade Regulation No. 71 of 2019 regarding Implementation of Franchising (“MOT Regulation 71/2019”).

This new regulation repeals GR 42/2007. However, MOT Regulation No. 71/2019 remains in effect until a new MOT regulation can be enacted.

The new franchise regulation contains several amendments and provides more detailed requirements to complement MOT Regulation No. 71/2019.

Comparison of GR 35/2024 to GR 42/2007

  • Minimum years of business operation. The new regulation reduces the minimum duration that a franchise registration applicant must have been operating from five years to three years.
  • Intellectual property (IP) status. Any relevant IP must now be registered before a franchise registration application can be submitted. This is a change from the previous regulations, under which it was possible to obtain a franchise registration (STPW) while an IP application was still pending, and if the IP application could not be registered, the STPW would be canceled.
  • Registration requirements for foreign franchisors. Under the new regulation, foreign franchisors must provide a legalized or apostilled business permit document from the country of origin in addition to the previously required franchise offering prospectus and statement letter from the relevant Indonesian authority.
  • Administrative sanctions. The new regulation has adjusted the three escalating stages of administrative sanctions to (1) two warning letters, (2) a 14-day suspension from business activities, and (3) STPW revocation. This varies from the three stages under the previous regulation (three warning letters, fine, and STPW revocation). The new regulation also expands the list of noncompliant actions that are subject to these administrative sanctions. In addition to the regulatory obligations detailed in the previous regulation, failure to use the proper franchise logo and failure to submit activity reports are now also punishable by these administrative sanctions.
  • Types of franchise organizers. The new regulation expands the categories of franchise organizers (i.e., the main parties to a franchise business arrangement) from two (franchisor and franchisee) to eight, including subfranchisors and subfranchisees for both foreign and local franchises.
  • Franchise registration (STPW) validity. The new regulation specifies conditions for STPW invalidity (e.g., termination of agreement, business cessation, IP expiration), and there is no longer a need to renew the STPW every five years. Under the previous regulation, STPW validity was limited to five years (renewable).

Notwithstanding these changes and updates, the core structure of Indonesia’s franchise regulations remains similar. In addition, many of the new provisions in GR 35/2024 had already been adopted in the aforementioned MOT Regulation 71/2019.

Implications

GR 35/2024 streamlines some processes (e.g., no longer requiring STPW renewal every five years) and tightens some requirements (e.g., regarding IP registration). It also provides more detailed categorization of franchise organizers and clearer sanction procedures, potentially aiming for a more structured and comprehensive regulatory framework.

These changes are designed to enhance the regulatory framework, ensuring a more compliant and robust franchise industry. This new regulation reflects the government’s commitment to fostering the growth of franchises, which continue to make significant contributions to the Indonesian economy.

For more details on GR 35/2024, or on any aspect of franchising in Indonesia, please contact Tilleke & Gibbins at [email protected].

Related Professionals

Industries

Consumer Products

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

December 30, 2025
On December 17, 2025, Laos’ Ministry of Industry and Commerce (MOIC) issued a notice introducing a new digital system that allows e-commerce businesses to obtain required certificates and licenses through an online, application-based platform. Notice No. 3988, which will take effect on February 1, 2026, introduces the E-Trust platform, a downloadable application that allows e-commerce businesses to remotely obtain acknowledgement certificates and business operating licenses. New Digital Registration Options Under the previous framework established by the Decree on E-commerce (2021), businesses were required to complete registration exclusively through paper-based submissions. The new system now offers businesses two registration options: Traditional paper-based process at the Division of E-commerce Management within the MOIC; or Electronic registration and renewal through the E-Trust platform. This change is expected to streamline procedures, reduce administrative burdens, and enhance accessibility for businesses operating outside Vientiane. The E-Trust platform facilitates compliance for both individuals and legal entities required to submit applications and renewals for required certificates and licenses. The development is particularly beneficial for businesses located in remote provinces, as it eliminates the need for physical travel and significantly accelerates processing times. Compliance Requirements and Penalties Businesses must obtain or renew the required certificates and licenses to avoid sanctions under the Decision on Fines and Other Measures for Violation of the Decree and Regulations on E-commerce (No. 2828/MOIC, dated November 11, 2025). Penalties for noncompliance may include monetary fines and other enforcement measures.
Read More
December 5, 2025
One morning, a California-based company mapping its Southeast Asia rollout opened an unexpected cease-and-desist letter from a Vietnamese IP firm. To the company’s surprise, the letter asserted that a local client already owned the company’s brand in Vietnam and threatened legal action. This is not an isolated incident. In another recent matter in the sports industry, a squatter demanded at least USD 48,000 from our client to “resolve” a similar conflict. For brands entering Vietnam or expanding distribution there, these tactics can create acute risk at precisely the point at which market momentum is building. Vietnam’s rapid economic growth and deepening integration into global trade have made it an increasingly attractive destination for multinational brands. Those same dynamics have intensified a longstanding issue: trademark squatting. Vietnam has modernized its IP framework over the past decade, but its strict first-to-file trademark system continues to incentivize opportunistic filings by parties with no legitimate interest in a mark. As more foreign brands build their reputation abroad before turning to Vietnam, squatters remain alert to timing gaps and enforcement frictions. The First-to-File System: Advantages and Vulnerabilities Vietnam adheres closely to the first-to-file principle under its Law on Intellectual Property. In practice, exclusive trademark rights belong to whoever submits the earliest valid application to the Vietnam Intellectual Property Office, regardless of prior use in Vietnam. This approach offers administrative clarity and reduces evidentiary burdens compared to use-based jurisdictions. Yet it also creates fertile conditions for squatting. Bad-faith actors regularly monitor foreign markets, identify brands gaining traction, and move quickly to register those marks domestically, often long before the genuine owner enters the market or prioritizes local filings. By the time the true brand seeks protection, the squatter’s application (or registration) stands as a legal obstacle, pushing businesses toward costly oppositions, cancellations, or uncomfortable negotiations
Read More
November 26, 2025
On November 21, 2025, Myanmar’s Ministry of Commerce (MOC) issued Notification No. 103/2025 promulgating the Geographical Indication Rules (GI Rules), establishing a comprehensive framework for the registration and administration of geographical indications (GI), which are primarily governed by the Trademark Law of 2019. On the same day, the MOC released Notification No. 104/2025 specifying the required forms for GI-related matters. The GI Rules establish a comprehensive set of procedures for the entire GI application process, including filing applications, oppositions, cancellations, and invalidations, and appointing a local representative for GI-related matters. Under the Trademark Law and the GI Rules, domestic and foreign legal entities (organizations) that formally represent a defined group of stakeholders (such as producers or manufacturers of natural products or resources, agricultural products, handicrafts, or industrial products) and other competent authorities from government departments are eligible to apply for GI registration with the Intellectual Property Department (IPD) in Myanmar. Application A GI application can be submitted in either English or Myanmar language electronically, in person, or via post. Foreign applicants seeking to register a GI in Myanmar are required to submit a copy of the registration certificate from their country of origin with the GI application. This certificate must explicitly state the GI name of the protected product. Notably, foreign applicants are mandated to appoint a local representative in Myanmar to act on their behalf for GI-related matters with the IPD and appeal-related matters with the IP Agency. The form for appointing the local representative must be duly notarized in the applicant’s home country to ensure its legal validity and acceptance in accordance with the GI Rules. Application for Use of GI Logo Pursuant to the GI Rules, any interested individual, local or foreign, may submit an application to the IPD for authorization to use the GI logo,
Read More
November 13, 2025
Tilleke & Gibbins has contributed the Thailand chapter to Franchise 2026, part of the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This annual guide offers comparative analysis of franchise laws and regulations across jurisdictions worldwide, providing practical insights for businesses and legal practitioners operating in the global franchise sector. Each country chapter in the 12th edition follows a Q&A format covering key aspects of franchise law and operations, including: Relevant legislation and rules governing franchise transactions Business organization options for franchised operations Competition law considerations Protection of intellectual property and brands Liability issues and risk mitigation Governing law and dispute resolution Real estate matters Online trading regulations Termination requirements Joint employer risks and vicarious liability Currency controls and taxation Commercial agency considerations Good faith obligations and fair dealing requirements Ongoing relationship management Franchise renewal processes Franchise migration procedures Sustainability commitments Electronic signatures and document retention Current developments in the franchise sector The Thailand chapter, authored by Alan Adcock and Kasama Sriwatanakul, provides an in-depth overview of the legal landscape for franchising and franchising-related activities in Thailand. The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Franchise 2026 guide—are also freely available on the ICLG website.
Read More