JAKARTA — Ministry of Entrepreneur and Cooperative Development (MECD) and Perbadanan Nasional Berhad (PERNAS), in collaboration with Malaysia External Trade Development Corporation (MATRADE), successfully concluded participation in FLEI 2026 held from 7 to 10 May 2026, achieving encouraging business outcomes and strengthening regional trade and franchise cooperation.
The four-day event recorded more than 300 business meetings organised by MATRADE Indonesia involving Malaysian franchise brands and Indonesian business partners, generating potential sales valued at approximately USD22.3 million (RM89.4 million). In addition to the scheduled business meetings, several participating companies also conducted separate discussions with prospective investors and strategic partners, reflecting strong market interest in establishing joint ventures and long-term collaborations.
“This year, 10 selected Malaysian companies from various sectors, namely Artivo, Findbulous, ILUVQURAN, Mee Hiris China Muslim, Midyson, Bonda, Dsara Fried Chicken, 1901, Dapur Mama Original Nasi Kukus and Ar-Rahn, participated in the event with the aim of establishing Malaysia’s presence and strengthening Malaysian brands in the Indonesian market,” said Norli Karim, Under Secretary of Entrepreneurship Empowerment and Monitoring Division, Ministry of Entrepreneur and Cooperative Development (MECD).
This number is expected to grow as the participants are still exploring further opportunities for potential partners. One of the notable achievements from the event includes ILUVQURAN, which is expected to sign a Memorandum of Understanding (MoU) with an investor marking another positive milestone arising from FLEI 2026.
Malaysia’s Trade Commissioner in Indonesia, Suresh Kumar highlighted that Indonesia continues to offer strong growth potential for Malaysian franchise brands, supported by its large consumer base, expanding middle-income segment and growing interest in innovative food and beverage, education and lifestyle concepts.
“Indonesia remains one of the most promising markets for Malaysian franchise expansion in ASEAN. The encouraging response received during FLEI 2026 reflects the strong demand for quality, affordable and scalable business concepts from Malaysia. We see growing opportunities for Malaysian brands to establish long-term partnerships and expand their footprint across major Indonesian cities,” he said.
Indonesia’s franchise industry continues to record strong growth, supported by rapid urbanisation, rising consumer spending, and an expanding middle class. With over 1,100 franchise brands operating across more than 68,000 outlets nationwide, the sector presents significant opportunities for regional expansion and investment. The Food & Beverage (F&B) segment remains the industry’s main driver, contributing approximately 48 per cent of the total franchise market, followed by growing demand in retail, beauty and wellness and education-related services.
Pernas also expressed its intention to further explore opportunities in the Indonesian market, reflecting continued confidence in its potential as a strategic destination for regional franchise expansion. According to Norli Karim, PERNAS will continue to strengthen its collaboration with MATRADE, recognising MATRADE’s strong capability and proven track record in facilitating market access opportunities for Malaysian franchisors in Indonesia, as demonstrated by the positive outcomes and business potential generated during FLEI 2026.
With increasing demand for innovative and affordable business concepts, Indonesia’s franchise industry is expected to continue expanding and remain a strategic gateway for regional business growth in ASEAN. —MATRADE
