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Journal : Awang Long Law Review

 1 
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 Ahmad Fatoni Albi Ternando Alendra Alendra, 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 Damanik, Herlina Denardo, Denardo Effan Najwaini Eka Danik Prahastiwi Eko Nuriyatman Emir Adzan Syazali , 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 Masniar Masniar, Masniar Mazmur Septian Rumapea Mey Risa, Mey Muhammad Teguh Nuryadin Munawaroh Munawaroh Muttaqien, Muhammad Ayyasy Muttaqien, Muhammad Ayyasy Nainggolan, Theresia Argatha Najiullah, Ahmad Noor, Tajuddin Noor, Tajuddin Nugraha, Muhammad Al Haadi Nurohman, M. Yusuf Nurwidiawati, Desti Omalia, Noka Orid Tatiana Pramitasari, Anisa Pramono, Abdul Chatim Prayitno, Slamet Putra Usman, Arie Qamarani, Syabibah Rahman Rahman Rahman Rauzah, Rauzah Rehan, Rehan Ridha Kurniawan Ronny Mantala, Ronny Rozikin, Imam Rudianto Rudianto Rusady, Muhammad Imron 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 Yosiyansyah, Ahmad Aldan