KSP LEGAL UPDATES
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KSP LEGAL UPDATES
Online Registration of Franchise Registration Certificate
The Ministry of Trade of the Republic of Indonesia (“MOT”) recorded 360 of 698 franchises have had the Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba - “STPW”).
This figure indicates lack of legal knowledge and awareness of franchise owners to register their businesses to eliminate any potential legal issues. Many of them argued that the requirements are way too complicated and relatively expensive, particularly from local franchise owners’ perspective.
The issuance of the MOT Regulation Number 86/M-Dag/Per/12/2016 on Integrated Trade Services Online Licensing Services Provisions and Digital Signature (“MOT Reg 86/2016”) was intended to simplify the procedure of obtaining the STPW for all franchise owners in remote areas in Indonesia.
Firstly, the franchise owner is required to obtain integrated licensing information system ("SIPT”) access right by submitting some documents via online such as the completed form and identity card or passport of company’s person in charge. After being verified, the applicant will receive user name and password to make either new, amendment or extension application.
New STPW application requires some documents to be uploaded such as franchise prospectus, franchise agreement, business license, intellectual property certificate, business license and so on. The STPW is valid for 5 (five) years. In terms of extension of the STPW, any amended information in the latest STPW and report on the use of domestic products should also be submitted to the SIPT.
The SIPT will be expired if the access rights holder does not use it for 1 (one) year as of the date of the grant of the access rights. Director of Business Development and Distributors (Direktur Bina Usaha dan Pelaku Distribusi) is entitled to revoke the access rights in case of:
1. breach of any provisions in the MOT Reg 86/2016;
2. the access rights holder does not provide valid data/information according to the field verification result;
3. misuse of the SIPT by the access rights holder as confirmed by the maintenance team; or
4. infringement in trade sectors by the access rights holder.
This figure indicates lack of legal knowledge and awareness of franchise owners to register their businesses to eliminate any potential legal issues. Many of them argued that the requirements are way too complicated and relatively expensive, particularly from local franchise owners’ perspective.
The issuance of the MOT Regulation Number 86/M-Dag/Per/12/2016 on Integrated Trade Services Online Licensing Services Provisions and Digital Signature (“MOT Reg 86/2016”) was intended to simplify the procedure of obtaining the STPW for all franchise owners in remote areas in Indonesia.
Firstly, the franchise owner is required to obtain integrated licensing information system ("SIPT”) access right by submitting some documents via online such as the completed form and identity card or passport of company’s person in charge. After being verified, the applicant will receive user name and password to make either new, amendment or extension application.
New STPW application requires some documents to be uploaded such as franchise prospectus, franchise agreement, business license, intellectual property certificate, business license and so on. The STPW is valid for 5 (five) years. In terms of extension of the STPW, any amended information in the latest STPW and report on the use of domestic products should also be submitted to the SIPT.
The SIPT will be expired if the access rights holder does not use it for 1 (one) year as of the date of the grant of the access rights. Director of Business Development and Distributors (Direktur Bina Usaha dan Pelaku Distribusi) is entitled to revoke the access rights in case of:
1. breach of any provisions in the MOT Reg 86/2016;
2. the access rights holder does not provide valid data/information according to the field verification result;
3. misuse of the SIPT by the access rights holder as confirmed by the maintenance team; or
4. infringement in trade sectors by the access rights holder.
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