In broad daylight (23/7), the ground floor of the Cililitan Wholesale Center (PGC) was always crowded. Various shops and snacks fill the shopping center on the outskirts of East Jakarta, ranging from clothes, shoes, bags to food and market snacks.
There are several familiar local brands, such as Bakmi GM, Ayam Geprek Pak Gembus, and the popular Susu Mbok Darmi.
At that time, the government and a number of associations inaugurated the kick-off of the Joint Movement of 100 Micro, Small and Medium EnterprisesUMKM) Licensing Local Brands. The goal is to encourage local products to be able to upgrade through licensing and franchising schemes.
This program is expected to open access for UMKM to fill the locations of large shopping centers or large malls in Jakarta. The event was attended by the Minister of Trade, Budi Santoso, and a number of directors and heads of the Indonesian Licensing Association as well as managers of Indonesian shopping centers.
"Today we are not just inaugurating a program, but starting a long journey. Hopefully it can be global, sir," said Susanti Wijaya, Chairperson of the Indonesian Licensing Association (ASENSI), while looking at the Minister of Trade who was sitting in front of her.
According to him, local brands that have been licensed can not only survive, but also have the opportunity to grow into national, even international brands.
"With a license, our products have a standard, an identity, and are more ready to compete," he said.
Later, Susanti explained, UMKM that have licensed locally already have legality and legal protection for their brands, which can be started with brand registration to the Directorate General of Intellectual Property (DJKI), then developed into a license business model.
With a license scheme, the brand owner can give official permission to other parties, either to open branches, produce goods, or sell products under the same brand, in a license or franchise scheme.
How to Apply for a License
The registration process is not as complicated as many UMKM players often imagine. Based on the Directorate General of Intellectual Property (DJKI) website, entrepreneurs can apply for trademark registration online through the DJKI e-filing system by attaching identity documents and trademark designs/logos.
Then, the UMKM pays the official registration fee. After that, the DJKI will examine the application. If there are no objections from other parties, the official brand certificate is issued.
Interestingly, the government has also regulated that the franchise or license registration process should not take more than 5 working days.
"If it has not been completed within five days, the business may continue while waiting for an official letter," said Minister of Trade Budi Santoso in his speech.
That way, he said, UMKM owners do not need to worry about their business being stalled just because of administrative matters.
"A registered brand means that it is more ready to grow, more ready to be looked at by investors, and more ready to become a local pride that goes global," said Budi.
Trade Minister Budi added that licensing also paves the way to foreign markets. "Our exports are not only goods, but also services. The franchise business model can be exported. Many who have never exported, they are surprised to suddenly get a buyer," he said.
Until June 2025, UMKM transactions through business matching reached 1.3 trillion rupiah.
The following are the benefits of registering a license:
- Open up expansion and franchising opportunities;
- You can enter large shopping centers or famous malls;
- More trust from consumers and investors;
- Ready to go international.
Minimal Risk
Chairman of the Association of Indonesian Shopping Center Managers (APPBI), Alphonsus Widjaja, said that the franchise scheme in this program is a form of success because it has minimal risk.
This is considered suitable for UMKM that already have superior products but do not have the resources to expand on their own. With a licensee or franchise partner, business expansion becomes faster and more efficient.
In addition, the credibility of licensed products is also recognized by Alphonzus from APPBI to be more attractive to the majority of visitors to Indonesia's shopping centers today.
"So that local brands enter the malls as well, and especially in the lower middle class. Because the profile of shopping centers in Indonesia is dominated by the lower middle class," he said, adding that the upper class makes up 5%.
Alphonzus explained that the large potential of the franchise business in Indonesia is supported by the profile of shopping centers in Indonesia, which is dominated by the lower middle class. If detailed, around 60% of shopping centers are classified as targeting the lower class, 35% of the middle class, and only about 5% of the upper class.
Classroom Expectations
To some, the word 'license' sounds like a complicated administrative affair. But behind a piece of registration paper lies great hope for thousands of businesses.
"If the brand is registered, it means that we have moved up a class, consumers also have more trust, especially if we want to franchise it," explained Reni Sitawati Siregar, Founder and CEO of PT Nusantara Card Semesta (NCS) Kurir.
NCS Kurir is a package, goods, and document delivery service company established in 1994. Reni is one of the business representatives who has registered a brand license for her company's goods and services with the Directorate General of Intellectual Property (DJKI).
"It's easier to enter malls, more trusted by consumers, and even ready to expand overseas," said Reni.
Among the crowd, Nurmayanti, the owner of Mango Jelly Milk, which is part of Indogrosir, smiles hesitantly. Her products are already crowded with buyers, even ordered by several companies.
"But for the license, I haven't registered yet, I don't really know how," he said.
Nevertheless, Nurmayanti said she was grateful to be invited so that she could understand the importance of licensing and meet with various other UMKM . "I hope raw materials are not too expensive, rental costs should not continue to rise, so that UMKM like me can be more advanced," she said.
