GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 42 YEAR 2007

GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
NUMBER 42 YEAR 2007

ABOUT
Franchising
Me out of God
PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering:
that to further improve the business orderly manner Franchise business opportunities and improve the national government need to set rules on franchise law;

Given:
1. Article 5 paragraph (2) The Constitution of the Republic of Indonesia 1945;
2. Book of the Law Civil Law (Burgelijke Wetboek, Staatblads 1847 No. 23);
3. Law Distribution Company 1934 (Bedrijfs Reglementerings Ordonantie 1934, Staatblads 1938 number 86);
4. Law No. 9 / 1995 on Small (Statute of the Republic of Indonesia's 1995 Tax 74, Additional Statute of the Republic of Indonesia No. 3611);

DECIDES To:
Setting: GOVERNMENT REGULATION OF franchises.

PART I
GENERAL PROVISIONS
Article 1
In this Government Regulation, which is intended to:
1. Franchising is the special rights that are owned by individuals or business entities of the system business with the characteristics of business in order to market goods and / or services that have proven successful and can be used and / or used by other parties based on the franchise agreement.

2. Grantor. . .

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2. Franchising is providing the individual or business entities that provide rights to utilize and / or use the Franchise held to the recipient of the Franchise.
3. Franchising is the recipient of an individual or business entities provided by the Franchise rights to utilize and / or use of the Franchising Franchise.
4. Minister is the minister who organized the task of governance in the field of trade.

Article 2
Franchising can be held in all regions of Indonesia.
CHAPTER II
CRITERIA
Article 3
Franchises must meet the following criteria:
a. have the characteristics of business;
b. proved an advantage;
c. have standards for services and goods and / or services that are offered are made in writing;
d. easily taught and applied;
e. support the ongoing development and
f. Intellectual Property Rights, which has been registered.

CHAPTER III
Franchise Agreements
Article 4
(1) Franchise held by written agreement between the recipient of the Franchise Franchise by observing the law of Indonesia.
(2) In case the agreement referred to in paragraph (1) written in foreign languages, the agreement must be translated into Indonesian language.

Article 5. . .

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Article 5
Franchise Agreement clause contains at least:
a. name and address of the parties;
b. the type of Intellectual Property Rights;
c. business activities;
d. rights and obligations of the parties;
e. assistance, facilities, operational guidance, training, marketing and given to the recipient of the Franchise Franchise;
f. areas of business;
G. period of the agreement;
h. ways of payment of benefits;
i. ownership, changes of ownership, rights and heirs;
j. dispute resolution; and
k. ways of extension, termination, and severance agreements.

Article 6
(1) Franchise Agreement can load clause for the right to appoint Receiver Recipient Franchising Franchise other.
(2) Franchise Recipients are given the right to appoint another recipient of the Franchise, must have its own conduct and at least one (1) where the business franchise law.

CHAPTER IV
ITS LIABILITY Franchise
Article 7
(1) The prospectus must provide Franchising Franchise bidding to prospective recipient of the Franchise during the bidding.
(2) Franchise bidding Prospectus referred to in paragraph (1) contains at least about:
a. The identity of the data Franchise;
b. The legality of the business franchise law;
c. history. . .

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c. history of activities;
d. The organizational structure of franchise law;
e. financial reports 2 (two) last year;
f. the number of places of business;
G. Recipients list of franchise law and
h. rights and obligations of the recipient of the Franchise and Franchise.

Article 8
Franchising grantor required to provide guidance in the form of training, guidance operational management, marketing, research and development to the recipient of the Franchise sustainable.
Article 9
(1) The Franchise and Franchise give priority to the use of the recipient of the goods and / or services results in production throughout the country meet the quality standards of goods and / or services specified in writing by the Franchise.
(2) The Franchise must cooperate with small and medium entrepreneurs in the local area as a recipient of the Franchise or suppliers of goods and / or services meet the conditions throughout the requirements set by the Franchise.

CHAPTER V
REGISTRATION
Article 10
(1) The Franchise prospectus required to register before bidding Franchising Franchise agreements with the recipient of the Franchise.
(2) Franchise bidding Registration prospectus referred to in paragraph (1) can be done by other parties that are given power.

Article 11. . .

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Article 11
(1) The recipients are obliged to register Franchising Franchise agreement.
(2) Registration Franchise agreements referred to in paragraph (1) can be done by other parties that are given power.

Article 12
(1) The application for registration Franchise bidding prospectus referred to in Article 10 proposed by attach documents:
a. Franchise bidding photocopy prospectus; and
b. photocopy of the legality of the business.
(2) The application for registration Franchise agreements referred to in Article 11 proposed by attach documents:
a. photocopy of the legality of business;
b. Franchise agreements photocopies;
c. Franchise bidding photocopy prospectus; and
d. Identity Card photocopy of the owner / management company.
(3) The application for registration Franchise referred to in paragraph (1) and (2) submitted to the Minister.
(4) Minister of alerts issued when the registration application Franchising Franchising has been the registration requirements referred to in paragraph (1) and (2).
(5) Registration of Signature Franchise referred to in paragraph (4) valid for a period of five (5) years.
(6) In case the agreement has not ended Franchising, Franchise Registration of alerts can be extended for a period of five (5) years.
(7) The process of application and issuance of alert Registration Franchising is not charged.

Article 13. . .

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Article 13
Further ways of registration is governed by Franchise Regulation of the Minister.
CHAPTER VI
Assistance and courtesy
Article 14
(1) Government and Local Government to make the construction of Franchising.
(2) Development referred to in paragraph (1), among others, the form of:
a. Franchising education and training;
b. recommendation to utilize the facilities perpasaran;
c. recommendations for the exhibition Franchising both in the domestic and overseas;
d. assistance through consultation clinic business;
e. Franchise award to the best of local and / or
f. cultivation of capital assistance.

Article 15
(1) Minister of monitoring the implementation of franchise law.
(2) The Minister can coordinate with related agencies in conducting surveillance referred to in paragraph (1).

CHAPTER VII. . .

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CHAPTER VII
Sanctions
Article 16
(1) Minister, Governor, Regent / Mayor according to the respective authority can impose administrative sanctions for the Franchise and Franchise Recipients who violate the provisions referred to in Article 8, Article 10, and / or Article 11.
(2) Sanctions referred to in paragraph (1) can be:
a. written warning;
b. fines and / or
c. Signature revocation of registration Franchise.

Article 17
(1) administrative sanctions such as a written warning referred to in Article 16 paragraph (2) a letter, apply to the Franchise and Franchise Recipients who violate the provisions referred to in Article 8, Article 10 and Article 11.
(2) a written warning referred to in paragraph (1) can be given at most three (3) times in a period of 2 (two) weeks from the date of the previous letter of warning was issued.

Article 18
(1) Sanctions administrative fines referred to in Article 16 paragraph (2) letter b, applies to the franchise law that do not offer prospectus registration Franchise referred to in Article 10 or the recipient of the Franchise does not make registration Franchise agreements referred to in Article 11 after issued a warning letter written third.
(2) Penalty referred to in paragraph (1) charged at the most Rp100.000.000, 00 (hundred million rupiah).
(3) administrative sanctions such as revocation of registration Signature Franchise referred to in Article 16 paragraph (2) letter c, to apply the franchise law that does not do guidance to the recipient of the Franchise referred to in Article 8 after the third letter written warning.

CHAPTER VIII. . .

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CHAPTER VIII
Provisions
Article 19
(1) the Franchise Agreement to be made before this Government must be registered as referred to in Article 11, paragraph (1).
(2) Registration referred to in paragraph (1) done at the latest one (1) year from the date of the applicability of this Government Regulation.

CHAPTER IX
STIPULATIONS
Article 20
At the time this Government Regulation takes effect, Government Regulation No. 16 Year 1997 on Franchising (Statute of the Republic of Indonesia Year 1997 Number 49, Additional Statute of the Republic of Indonesia No. 3690) is revoked and declared not valid.
Article 21
At the time this Government Regulation applies, all legislation which is the implementing regulations of Government Regulation No. 16 Year 1997 on Franchising (Statute of the Republic of Indonesia Year 1997 Number 49, Additional Statute of the Republic of Indonesia No. 3690) stated still valid as long as no conflict with the This government regulation.
Article 22
Government regulation is effective on the date of legislation.
To keep. . .

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So that everyone knew, ordered the enactment of Government Regulation placed in the Statute of the Republic of Indonesia.
Defined in Jakarta
on 23 July 2007
PRESIDENT OF THE REPUBLIC OF INDONESIA,
TTD
DR. H. Susilo Bambang Yudhoyono
Legislated in Jakarta
on 23 July 2007
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
TTD
ANDI MATTALATTA
Statute REPUBLIC OF INDONESIA YEAR 2007 NUMBER 90
According to a copy of the original
DEPUTI SECRETARY OF STATE MINISTER
AREA legislation,
MUHAMMAD SAPTA MURTI

DESCRIPTION
TOP
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
NUMBER 42 YEAR 2007
ABOUT
Franchising
I. GENERAL
In order to increase business with the assistance of Franchise in Indonesia, the national need to encourage employers, especially small and medium entrepreneurs to grow as the national franchise law that are reliable and have the competitiveness in domestic and overseas, especially in the context of their products in the country.
Government need to consider the legality of the business and bonafiditas Franchising from both overseas and in the country in order to create transparency of business information that can be used optimally by the business in the national market of goods and / or services with Franchise. Besides, the government can monitor and compile data Franchising and the number of types of businesses that diwaralabakan. For that, before making the Franchising Franchise agreements with the recipient of the Franchise, must submit a prospectus Franchise bidding to the Government and the prospective recipient of the Franchise. On the other hand, if the agreement Franchise agreement, recipient of Franchising Franchise agreement must convey to the Government.
Government regulation is expected to try to provide certainty and legal certainty for the Franchise and Franchise Recipients in their products.
II. ARTICLE BY ARTICLE
Article 1
Self-explanatory.
Article 2
Self-explanatory.
Article 3. . .

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Article 3
A letter
The definition of "business characteristics" is a business that has a superior or a difference that is not easy to be imitated compared with other similar businesses, and make consumers always looking for characteristics mentioned. For example, management system, the way sales and service, or the arrangement or how the distribution is a special characteristic of the franchise law.
Letter b
The definition of "proved an advantage" is pointing to the experience of the franchise law that has owned more than 5 (five) years and have business tips to overcome the problems in the travel business, and this is proved by the still surviving and thriving business with the benefit.
Letter c
What is meant by "standards for services and goods and / or services that are offered are made in writing" is the standard in writing so that the recipient of the Franchise can conduct business in the framework of clear and the same (Standard Operational Procedure).
Letter d
The definition of "easily taught and applied" is easily implemented so that the recipient of the franchise law that has not had the experience or knowledge about the kind of business can do better with in accordance with the guidance of operational management and sustainable given by the Franchise.
Letter e
What is meant by "sustained support" is support from the Franchise to the recipient of the Franchise continuously as the operational guidance, training and promotion.
Letter f
The definition of "Intellectual Property Rights, which has been registered" is the Intellectual Property Rights related to business such as brands, copyrights, patents and trade secrets, have already registered and have a certificate or are in the process of registration in the authorized institutions.

Article 4. . .

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Article 4
Self-explanatory.
Article 5
Self-explanatory.
Article 6
Self-explanatory.
Article 7
Paragraph (1)
Self-explanatory.
Paragraph (2)
A letter
The definition of "identity data" is a photocopy of Identity Card business owners when individuals, and a copy of Identity Card of the shareholders, commissioners and directors when a body of the business.
Letter b
What is meant by "legal business" is a business permit as a technical Permit Trade Business (SIUP), Tourism Business Stay Permit, Permit Founding Education Unit.
Letter c
What is meant by "the history of activities" is a description that includes, among others, the establishment of business, business activities, and business development.
Letter d
Self-explanatory.
Letter e
Self-explanatory.
Letter f
The definition of "business" is the outlet or outlets for conducting business.
Letter g
The definition of "Franchising Recipients list" is the name, company name and / or individuals as a recipient of the Franchise.
H letter. . .

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The letter h
Self-explanatory.
Article 8
The guidance provided Franchising be implemented continuously, including conducting quality control and evaluation of the business done by the recipient of the Franchise.
Article 9
This provision is intended to increase the use of the product in the country and not use the product overseas replacement products are available throughout the country and meet the quality standards of the products needed.
Article 10
Self-explanatory.
Article 11
Self-explanatory.
Article 12
Self-explanatory.
Article 13
Self-explanatory.
Article 14
Paragraph (1)
Self-explanatory.
Paragraph (2)
A letter
Self-explanatory.
Letter b
Self-explanatory.
Letter c
Self-explanatory.
Letter d
Self-explanatory.
Letter e
Self-explanatory.
F letter. . .

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Letter f
The definition of "cultivation of capital" is, among other facilities to get credit facilities and get a low interest rate.
Article 15
Self-explanatory.
Article 16
Self-explanatory.
Article 17
Self-explanatory.
Article 18
Fines are set by officials who issued the alert Registration of Franchising or officials appointed and paid cash to become the State Non Tax Revenue.
Revocation of Franchise Registration Alerts by officials who publish or appointed officials.
Article 19
Self-explanatory.
Article 20
Self-explanatory.
Article 21
Self-explanatory.
Article 22
Self-explanatory.

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