According to Supit, these foreign franchise holders are also interested to enter the retail, education and health sectors. However, they will first wait and see for results of the legislative and presidential elections, scheduled for April and July 2014, before starting expansion to Indonesia as political stability is expected to be more stable after the elections. Supit declined to mention any names yet of the foreign investors.

For domestic franchise holders and franchisees, the influx of international brands implies that competition will intensify. Currently, there are fifty local franchises.

Last year, the government of Indonesia issued a number of important new rules for the franchise business.