Retail in Asia

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Indonesia to end monopolies in franchising

A new regulation set to come into effect in Indonesia this month will require foreign franchising companies to have more than one local partner to avoid creating market monopolies and encourage more competition.

The Trade Ministry’s domestic trade director general, Gunaryo, said that most franchisees of foreign companies were currently controlled by a single "master franchisee", resulting in a monopoly as other partners could not buy licenses to the business model.