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Franchising has been one of the country’s fastest-growing business sectors over the past several years, with turnover reaching Rp 4.1 trillion ($398 million) per month, the Trade Ministry said on Sunday.

The number of businesses entering into franchising arrangements is increasing by 3 percent per year, Trade Minister Mari Pangestu said. There are now about 1,010 active franchisers in the country, including 260 foreign franchisers and 750 local franchisers.

There are also currently about 42,900 franchisees employing 819,200 people throughout the country.

A franchiser grants a franchise, or right, to market its goods or services to a franchisee.

“Franchising is a business system that is capable of supplying goods in a very efficient way to customers,” Pangestu said at the opening of the International Franchise, License and Business Concept Expo and Conference 2009 in Jakarta on Friday.

The minister said franchising offered a robust business model that could succeed amid the global economic crisis.

The exhibition, which ended on Sunday, was attended by 30 local franchisers and 175 overseas franchisers, from countries including Singapore, Malaysia and Australia.

Pangestu said the ministry had issued a decree to regulate the franchising sector. “It sets guidelines, so people can participate in businesses safely,” she said.

Anang Sukandar, chairman of the Indonesian Franchise Association (AFI), said the sector would grow by up to 12 percent this year. AFI estimates that the sector could eventually achieve an annual turnover of Rp 80 trillion.