Master Franchise Agreement Required For STPW

Government amends the Minister of Trade Number 53/M-DAG/PER/8/2012 Year 2012 (Permendag 53/2012) regarding Organizing Franchise Business by enact the Minister of Trade Number 57/M-DAG/PER/8/2014 Year 2012 (Permendag 57/2014). The Amendment has been in force 17 September 2014.

The amendment consists of new provision for Franchisor to obtain Certificate of Franchise Registration (“STPW”). It requires Franchisor to attach Master Franchise Agreement to obtain STPW. It differs from prior regulation which only required franchisee to submit Franchise Agreement.

Ministry of Trade, in this case STPW’s issuer officer, will verify the Master Franchise Agreement within 20 business days. If the agreement is not contrary to law, Franchisor is able to proceeds STWP’s application by complete other required Documents.

Permendag 57/2014 does not regulate specifically the matters which are regulated in Master Franchise Agreement. It is different with Franchise Agreement which is regulated specifically in Permendag 53/2012. In the new regulation, the requirement for Master Franchise Agreement only shall not contrary to prevailing law. Ministry of Trade will reject for STPW’s application in case the Master Franchise Agreement is contrary to prevailing law.

Permendag 57/2014 does not regulate the language required for Master Franchise Agreement, however according to another regulation, it should be provided in Indonesian language or dual languages if it involves a foreign party.


SMART Legal Consulting has extensive experience in assisting Foreign Investors to obtain Certificate of Franchise Registration in Indonesia. If you need immediate assistance, please contact the SMART Help Desk at:

H: +62821-1234-1235

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