Ms. Prudence Jahja, an associate at Januar Jahja & Partners (JJP), was quoted extensively in a recent magazine article focusing on franchising issues across Southeast Asia. Entitled “Franchising the Future,” the article appeared in the June/July 2013 edition of Asia IP and highlighted the growing popularity of the franchise model for conducting business in the 10 countries of ASEAN, as well as the myriad legal issues arising from such strategies.
As noted by Ms. Jahja in the article, the franchising model is a relatively new introduction to Indonesia, with the highest concentration of franchises occurring in the food and beverage and retail industries. The article quotes Ms. Jahja as stating that “[c]ompared to more developed ASEAN markets such as Singapore or Thailand, franchising in Indonesia is still in the early stages, with government regulation in this area only beginning about 15 years ago.”
Along with the increased popularity of franchising in Indonesia have come challenges for businesses seeking to implement this business model in the region’s most populous country. Most recently, in August 2012 the Indonesian government issued Regulation of the Minister of Trade No. 53/M-DAG/PER/8/2012 regarding The Implementation of Franchising (“Regulation 53”), which includes a number of provisions that could be viewed as overly protective of local businesses. More specifically, the article notes that Regulation 53 “requires, among other things, that franchisors and franchisees use ‘local components’ for at least 80% of the raw materials, business equipment and merchandise used in the franchise.” Ms. Jahja noted, however, that the mechanism set up to enforce this requirement—a so-called Assessment Team—has not yet been created, “leading to questions as to how and when these new regulations will be enforced in the meantime.”
Due to this and other uncertainties in establishing franchises in Indonesia, engaging knowledgeable local counsel is vitally important. JJP has experience not only advising on compliance with Indonesian franchise law but securing registration of documents necessary to obtain the required certificates and licenses to engage in franchising activities in Indonesia.
Ms. Jahja, who holds an LL.M. in Intellectual Property Law from the Munich Intellectual Property Law Center (MIPLC) at the Max Planck Institute in Munich Germany, can be reached directly at prudence@jahja.com. Her professional biography can be viewed here.
The full article can be accessed at: http://www.asiaiplaw.com/article/39/1480/.
About Januar Jahja & Partners:
Januar Jahja & Partners is a boutique intellectual property law firm based in Jakarta, Indonesia. The Firm has over 25 years experience handling all aspects of intellectual property law, including trademark and patent prosecution as well as IP-related litigation and other contentious matters, and provides legal services and counsel to well-known international businesses as well as leading Indonesian companies.
About Asia IP:
Asia IP is a specialist monthly magazine that provides in-depth and coverage of the key IP challenges that companies can face when investing and doing business in Asia, and the solutions that are available. Launched in December 2008, it is part of the Apex Asia Media Limited publishing group based in Hong Kong.
