economi issue
CHAPTER ONE
INTRODUCTION
1.1. Background of The Study
In the early of 1970, Franchise as a business format known in Indonesia started the pioneer such as KFC, Pizza, Coca-Cola and McDonals entered franchise market in Indonesia, journal of Bank Indonesia (2009). The concept of franchising recently has become one of the trend of modern economy that gave a new color for economic sector especially in Indonesia. Since foreign franchise entered the market of Indonesia, the concept of franchise itself has been define as below:
“Franchise is a method of distributing goods and services to the consumer, which is sold to other parties who are interested. The owner of the methods that are sold is called the "Franchisor", while the buyer the right to use a method called franchisee" (Beshel, 2000: 1).
Whereas, in 1990 franchise market has been dominated by domestic franchise such as Indomaret, Alfamart, Alfa Supermarket that now already known as , and so on. Every year domestic franchise always expands from one region to the others even reaches into the small villages in Indonesia. The significant development of domestic franchise can be touched since 1990 to 2008 that majority moving on retail business for example Alfamart. In 1990, domestic franchises have 6 outlets whereas in 2006 the totaly of domestic franchise was about 230 outlets, In 2008 domestic franchise reached 57.6% with the total about 450 franchise, it increased 35.4% from the previous years. In 2008, total omzet of franchise reaches Rp81,03 trillion, journal of Bank Indonesia (2009: 3).
Alfamart is one of domestic franchise that conceives retail business which its development of minimarket can be observed per year. As a retailer business, Alfamart gives an IPR (Intellectual Property Right) to its franchisee to use product, service, brand and trademark so they can run the business smoothly because the quality of product and trademark has been regarded and trusted by society. Therefore, many investors
INTRODUCTION
1.1. Background of The Study
In the early of 1970, Franchise as a business format known in Indonesia started the pioneer such as KFC, Pizza, Coca-Cola and McDonals entered franchise market in Indonesia, journal of Bank Indonesia (2009). The concept of franchising recently has become one of the trend of modern economy that gave a new color for economic sector especially in Indonesia. Since foreign franchise entered the market of Indonesia, the concept of franchise itself has been define as below:
“Franchise is a method of distributing goods and services to the consumer, which is sold to other parties who are interested. The owner of the methods that are sold is called the "Franchisor", while the buyer the right to use a method called franchisee" (Beshel, 2000: 1).
Whereas, in 1990 franchise market has been dominated by domestic franchise such as Indomaret, Alfamart, Alfa Supermarket that now already known as , and so on. Every year domestic franchise always expands from one region to the others even reaches into the small villages in Indonesia. The significant development of domestic franchise can be touched since 1990 to 2008 that majority moving on retail business for example Alfamart. In 1990, domestic franchises have 6 outlets whereas in 2006 the totaly of domestic franchise was about 230 outlets, In 2008 domestic franchise reached 57.6% with the total about 450 franchise, it increased 35.4% from the previous years. In 2008, total omzet of franchise reaches Rp81,03 trillion, journal of Bank Indonesia (2009: 3).
Alfamart is one of domestic franchise that conceives retail business which its development of minimarket can be observed per year. As a retailer business, Alfamart gives an IPR (Intellectual Property Right) to its franchisee to use product, service, brand and trademark so they can run the business smoothly because the quality of product and trademark has been regarded and trusted by society. Therefore, many investors
References: Annual Report PT. Sumber Alfaria Trijaya Tbk 2011. Bank Indonesia. 2009. Pola Pembiayaan Usaha Kecil Usaha Franchise. Beshel, Barbara. 2000. An Introduction to Franchising: IFA Educational Foundation The Money Institute. Herustiati & Simanungkalit, Victoria. 2002. Bisnis Prospektif Bagi UKM. Laporan Pemerintah Tentang Pelaksanaan Anggaran Pendapatan dan Belanja Negara Semester Pertama, 2012. Nurikayulian. 2010. Sejarah Franchise Di Indonesia. Sumber: JawaPos Ed. Janury 6th.