Swift Centralization of Franchising Permits Demanded

Under the current Indonesian regulations, to sell retail goods, a permit from Trade Ministry, so-called “IUTM” is required under Trade Ministry Regulation of 53/M-DAG/PER/12/2008, while to provide foods and beverages in stores’ eating spaces, a permit from Jakarta Tourism Agency is required. Therefore, convenience stores not only dealing with retail goods but also providing foods and beverages in their eating spaces are required to obtain the said both permits.

According to the article in Jakarta Globe on Wed. September 8, 2012, Trade Minister, Gita Wirjawan disclosed that the leading Convenience stores, 7-Eleven and Lawson have secured only permits for operation of restaurants from Jakarta Tourism Agency, but they have not obtained IUTM. Then, they are facing with desperate straits being shut down in the latest blow imposed by the nation’s regulators.
Turning to the allegation of the management companies of both convenience stores, 7-eleven obtained IUTM signed by la local government, not by Trade Ministry, while Lawson obtained IUTM which was however issued to their Indonesian partner of Joint Venture company for its Alfamidi franchise rather than Lawson. As far as Trade Minister reviewed their permits, those are neither lawful nor appropriate permits to enable them to run their business as they currently do.
Finally, Trade Minister released the government plans to issue a regulation that will centralize franchising permits, including in the foods and beverage industry so that the “grey” area can be eliminated.

The news source is the article from Newspaper, Jakarta Globe, Wed. September 6, 2012


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