The Recipe for Success: Entering Indonesia’s F&B Industry

Scroll through TikTok or step into a mall in Jakarta and it’s obvious: Indonesians love food. From matcha and Japanese dessert cafés to viral spicy instant noodles filling supermarket aisles, international foods and beverages are part of the lifestyle in Indonesia.

Fueled by a young and hungry population eager to try new flavors, Indonesia has grown one of the largest F&B markets in Southeast Asia. This creates a huge opportunity for international F&B players, but opportunity alone isn’t enough. The real challenge is figuring out how to enter the market in a way that’s sustainable, legally sound, and commercially effective.

Options for Market Entry

Foreign brands typically can consider three main routes when entering Indonesia:

• Franchising

  A popular choice for retail concepts with high scalability and lower investment, but with limited control over the actual operations and consistency of the product itself.

• Wholly-Owned Subsidiary

  Offers maximum control and direct implementation of standards, but it also means taking on all the risks and responsibility alone.

• Joint Venture (JV)

  A partnership between a foreign brand and a local partner, sharing ownership, risks, and rewards along the way.

Franchising or going solo each have their place, but today, many foreign businesses are discovering that the JV is an attractive option for those that want to hit the ground running, while still retaining control of the business.

Why Joint Ventures Work

A JV is more than just a legal arrangement. Done right, it blends the best of both worlds:

• Foreign brand power – The foreign partner brings the product, brand reputation, and operational know-how.

• Local expertise – The Indonesian partner brings local insight, access to supply-chain networks, and knowledge of regulatory procedures.

Together, these strengths can turn a JV into a recipe for long-term success in Indonesia’s competitive F&B market.

Getting the Structure Right

What makes or breaks a JV usually comes down to structure. Many start strong but later fall apart because key commercial and legal terms were overlooked at the beginning.

Here are some most important points to address early:

• Ownership and contribution – Who will own the majority stake, and who contributes what?

• Decision-making – Who has the final say on business strategies, and products?

• Profit-sharing – How will the profits (or losses) be distributed?

• Continuity – What happens if one party wants to leave or bring in a new investor?

Addressing these questions upfront avoids costly disputes later and gives both parties confidence in the partnership.

Equally crucial is how the JV is governed, this means having clear shareholder agreements, deadlock/dispute resolution mechanisms, and balanced decision-making processes. The initial framework set at the start by the parties will shape how well the venture runs. A strong structure can allow a JV to scale smoothly rather than being stuck in deadlock.

Final Take

Whether launching a restaurant brand or filling supermarket shelves with packaged foods, Indonesia offers enormous opportunity. But success takes more than a good product, it takes the right structure to carry on the business.

For global F&B brands eyeing the Indonesian market, a well-crafted joint venture can be more than an entry strategy. It can be the catalyst to shaping the future of how millions of Indonesians eat, drink, and experience food.

By: Rizky Akbar Idris

DISCLAIMER:

This material is prepared for general information purposes only. It is not intended to give legal or any other professional advice, opinion or recommendation and, accordingly, it should not be relied upon. Specific legal advice should be sought before taking any action based on the contents in this material. Please contact us if you need any assistance regarding this matter.