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Journal : Awang Long Law Review

LEGAL COMPLIANCE IN THE FOREIGN FRANCHISE SECTOR: EXAMINING THE ALIGNMENT BETWEEN FRANCHISE AGREEMENTS AND BUSINESS LICENSING IN INDONESIA Nugraha, Muhammad Al Haadi; Fathni, Indriya; Kurniawan, Ridha; Damanik, Herlina; Irawan, Agus
Awang Long Law Review Vol. 8 No. 1 (2025): Awang Long Law Review
Publisher : Sekolah Tinggi Ilmu Hukum Awang Long

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56301/awl.v8i1.1801

Abstract

This study analyzes the legal implications of regulatory disharmony between Government Regulation No. 35/2024 on Franchises and Government Regulation No. 28/2025 on Risk-Based Business Licensing, focusing on the position of the Franchise Registration Certificate (STPW) within the Online Single Submission (OSS) system. Using a normative juridical method with statutory, conceptual, and comparative approaches, the research relies on secondary legal materials legislation, scholarly works, and prior studies examined qualitatively through legal certainty theories and relevant doctrines. Findings indicate three main issues. First, overlapping requirements between STPW and OSS create administrative duplication and potential dual-track enforcement, resulting in legal uncertainty. Second, conflicts arise between public law obligations and private contractual practices in foreign franchise agreements, particularly regarding exclusive supply clauses that contradict local content and MSME partnership requirements. Third, comparative analysis shows that Malaysia’s Franchise Act 1998, strengthened by the 2020 amendment, ensures stronger legal certainty through ex-ante registration, clear deadlines, and enforceable criminal sanctions, providing more credible deterrence than Indonesia’s framework. The study concludes that Indonesia’s franchise regulation remains fragmented and lacks binding statutory authority, which undermines investor confidence and domestic economic protection. It recommends the enactment of a comprehensive franchise law at the statutory level, full integration of STPW within the OSS system, and reinforced sanction mechanisms to enhance legal certainty and create a more conducive business climate.
Co-Authors Adi Pratomo Aditya, Sandi Adrian, Salman Agustina, Diana Imanuella Ahmad Fatoni Albi Ternando Alendra Alfarisi, M. S Alfarisi, M.S Alfarisi, MS Anhar Khalid Anisa Kusumawardani Antoro, Agung Aorta, Dian Tias April Laksana Ardiyansah, Ardiyansah Aziza, Pretty Failasufa Baju Arie Wibawa, Baju Arie Budianto, Dian Tri Bustari, Hendra Damanik, Herlina Denardo, Denardo Effan Najwaini Eka Danik Prahastiwi Eko Nuriyatman Emir Adzan Syazali Endang Rismunarsi, Endang FADHOLI, MUHAMMAD Fauzi, Yusuf Rizal Fernando, Iqbal Fitria Fitria Fitriani, Cindy Friliyawati, Desy Gea, Zuniati Hairul Anwar, Hairul Harsiti Harsiti, Harsiti Heldiansyah -, Heldiansyah Herman Brahmana, Herman Hernadi, Afriza Hilman, Mohamad Ikhwan Faisal, Ikhwan Indri Yani, Indri Indriya Fathni Juanda - Kartika Sasi Wahyuningrum Kenedi, Kenedi Krahara, Yuwan Ditra Kuara, Glenessa Lili Naili Hidayah Linda Permanasari, Linda Mailani, Asrti Mansyur, Alfi Marisa Marisa Masniar Masniar, Masniar Mazmur Septian Rumapea Mey Risa, Mey Muhammad Teguh Nuryadin Munawaroh Muttaqien, Muhammad Ayyasy Muttaqien, Muhammad Ayyasy Nabilah, Afifah Putri Nainggolan, Theresia Argatha Najiullah, Ahmad Noor, Tajuddin Noor, Tajuddin Nugraha, Muhammad Al Haadi Nurohman, M. Yusuf Nurwidiawati, Desti Omalia, Noka Orid Tatiana Paturahmat, M. Rezky Pebrianto, Iin Pramitasari, Anisa Pramono, Abdul Chatim Prayitno, Slamet Presilia, Nadjwa Amanda Putra Usman, Arie Qamarani, Syabibah Rahman Rahman Rahman Ratam, Aldila Berliana Rauzah, Rauzah Rehan, Rehan Ridha Kurniawan Ronny Mantala, Ronny Rozikin, Imam Rudianto Rudianto Rusady, Muhammad Imron Rustandi, Reanto Agam Rustandi, Tantan Said Muhammad, Said Salim, Muchtar Saloma Sari Ningsih Setiyorini, Nanda Krisna Setyawati, Kiki Shinnay, Adam Elyas Shinnay, Adam Elyas Shintia, Novie Sigit, Haris Triono Siroj, Sirojudin Siti Fatimah Sukses M. P. Siburian, Sukses M. P. Sunjoyo, Alexandra Martha Santoso Syachwaldi, Rizki Alyan Tajudin Tajudin Timur, Ratno Yolanda, Rasyita Yosiyansyah, Ahmad Aldan