Malaysian Brands Gain Strong Momentum in Indonesia
Malaysia recorded approximately RM89.4 million (USD22.3 million) in potential sales during its participation in the Franchise and License Expo Indonesia (FLEI) 2026, highlighting growing regional demand for Malaysian franchise and business concepts.
The participation was led by the Ministry of Entrepreneur and Cooperative Development together with Perbadanan Nasional Berhad (PERNAS) and supported by Malaysia External Trade Development Corporation (MATRADE).
Held from 7 to 10 May 2026 in Jakarta, the four-day expo facilitated over 300 business meetings between Malaysian franchise companies and Indonesian business partners.
Strong Demand for Malaysian Franchise Concepts
Ten Malaysian companies from sectors including food and beverage, education, retail, and financial services participated in the event. These included brands such as ILUVQURAN, 1901, Dsara Fried Chicken, and Dapur Mama Original Nasi Kukus.
According to Norli Karim, Under Secretary of the Entrepreneurship Empowerment and Monitoring Division at the Ministry of Entrepreneur and Cooperative Development, the participation aimed to strengthen Malaysian franchise visibility and expand business presence within Indonesia’s rapidly growing market.
Furthermore, several participating companies conducted additional discussions with potential investors and strategic partners outside the official business meetings, reflecting sustained market interest in long-term partnerships and joint ventures.
One notable outcome involved ILUVQURAN, which is expected to sign a Memorandum of Understanding (MoU) with an investor following discussions at the expo.
Indonesia Emerges as a Strategic Growth Market
Malaysia’s Trade Commissioner in Indonesia, Suresh Kumar, described Indonesia as one of ASEAN’s most promising markets for franchise expansion.
He noted that the country’s large consumer population, growing middle-income segment, and increasing demand for innovative business concepts continue to attract Malaysian brands.
“Indonesia remains one of the most promising markets for Malaysian franchise expansion in ASEAN,” he said. “The encouraging response received during FLEI 2026 reflects strong demand for quality, affordable and scalable business concepts from Malaysia.”
As a result, Malaysian businesses are increasingly exploring opportunities to establish long-term operations across major Indonesian cities.
Indonesia’s Franchise Industry Continues to Expand
Indonesia’s franchise sector has experienced strong growth due to rapid urbanisation, rising consumer spending, and an expanding middle class.
Currently, the country hosts more than 1,100 franchise brands operating across over 68,000 outlets nationwide. The food and beverage sector remains the largest contributor, accounting for nearly 48% of the total franchise market.
Meanwhile, industries such as retail, beauty and wellness, and education services continue to record rising demand. Consequently, Indonesia has become an increasingly attractive destination for ASEAN business expansion and cross-border investment.
Malaysia Strengthens Regional Franchise Collaboration
PERNAS also reaffirmed its commitment to exploring further opportunities within Indonesia, citing confidence in the market’s long-term potential for regional franchise growth.
Moreover, the organisation plans to continue strengthening collaboration with MATRADE to support Malaysian franchisors entering international markets.
The strong outcomes achieved during FLEI 2026 demonstrate how Malaysian businesses are leveraging regional trade platforms to expand internationally while strengthening ASEAN economic cooperation.
Ultimately, growing demand for innovative and affordable franchise concepts positions Indonesia as a key gateway for Malaysian brands seeking regional growth opportunities in Southeast Asia.
