Why Build an Education Franchise in Jakarta

Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Jakarta, Indonesia is a great city with ample potential for an education franchise and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.

As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.

Jakarta is a densely populated economic powerhouse that has shown sustainable economic growth. A city with moderate English proficiency, it is home to more than 10 million people. Moreover, Jakarta is a modern city with world-class highways, malls, theme parks, and more. Here are some facts on why it is rewarding to open an education franchise in Jakarta.

  1. Jakarta is a moderate proficiency city with an EF EPI score of 54.05,[ii] which provides an English language franchise with a notable market in Asia.
  1. The city has a large number of public and private universities, and academies. The literacy rate in the city is over 91%.
  1. Jakarta is one of the most densely populated cities in Asia with a population of over 10 million inhabitants.
  1. Economically strong, Jakarta’s economy grew to 5.1% in 2014, and is expected to grow by 7% by 2017.

Here are further reasons on why Jakarta is a location worth considering for an education franchise.

Education and English Learning

Education is compulsory for every child for nine years – six years in primary school and three years in secondary school. The literary rate in Indonesia was 98.8 percent for ages 15 to 24 years from 2008 to 2012.[i] Adult literacy rate stood at 91.98 percent in 2006.[i] Jakarta has a large number of private and public universities, academies, business schools and other institutes of higher education. Public universities are funded by the government, but are governed independently by institutes. Some of the top universities in Jakarta include the University of Indonesia, President University, Jakarta State University, and Jakarta International College.

As for English proficiency, Indonesia has moderate proficiency with an EF EPI score of 52.94.[ii] It ranks 32nd from among 72 countries in Asia followed by Taiwan.[ii] Jakarta is a moderate proficiency city with a score of 54.05.[ii] Many other cities of Indonesia register low English proficiency. EF English First Global educational research and development director Steve Crooks summed up Indonesia’s position concerning English language amply when he said that “As Indonesia continues to develop, improving English language skills – both spoken and written – will be important to attract greater foreign investment, bring in multinational companies and attract the type of high-skill, high-pay jobs that the Indonesian government is aiming to develop in the future through greater service level business investment.”[iii] Importance of English learning and education in Jakarta makes it a fertile market for an English language franchise to tap into.

Population & GDP

Jakarta is one of the most densely populated cities in Asia. It has a population of approximately 10.2 million (2014), up from 9.58 million (2010).[iv] Jabodetabek, the metropolitan urban area or megacity surrounding Jakarta city, has a population of 28 million.[iv]

Considered one of the fastest growing economies in the world, Jakarta’s economy grew by 5.1% in 2014.[v] It reflected Indonesia’s fast growing economy. The GDP of Indonesia touched 5% by the end of 2015, showing the strongest growth rates in previous quarters.[v] The city’s GDP per capita was $9,984 and the municipal budget was $7.31 billion.[vi] Services including trading, hotels, finance, telecom, and business services, make the biggest contributor to the GDP followed by manufacturing and construction. Jakarta contributes over 13% of its GDP to the national GDP.[vii] Analysts predict that the gross regional domestic product (GRDP) of Jakarta should show a growth rate of over 7% to reach Rp 1.857 trillion by 2017.[vii] With the city’s ever growing population and economy, setting up an education franchise would be a lucrative choice for business owners.

Infrastructure and Facilities

Indonesians love to shop. You will find a large number of world-class shopping malls, markets (pasars), International Trade Centres (ITCs), and boutiques across Jakarta.[viii] From designer stores to traditional shops, Jakarta offers both modernity and culture. The city also has many museums (47), golf courses (10), sports clubs (50), and an active nightlife too. There are billiard bars, nightclubs, and nightspots. For food lovers, there are a wide variety of restaurants to choose from – most of which are found inside malls and hotels. Some of the places worth visiting in the city include the Museum Nasional, Museum Sejarah Jakarta, Ancol Dreamland (Resort with theme parks, beaches & golf), and Istiqlal Mosque (Mosque with modern style and unique architecture).

Upcoming projects in Jakarta are set to further modernise the city. High-speed rail project costing $5.5 billion begin in 2016 from Jakarta to Bandung. [ix] It connects the capital city to the textile hub of Bandung. A number of other infrastructure projects are underway, including the Trans-Java Pantura railway and the Jakarta Mass Rapid and Light Rail Transit. More such projects are being proposed to turn Jakarta into a world-class city. With the city’s high economic activity, many historic sites and a shopping heaven, Jakarta is a common tourist destination. However, most tourists do not speak Bahasa Indonesia, therefore would require English assistance. This can be one of the many factors when one chooses to open an English language franchise in Jakarta.

Government Incentives to Businesses

The Indonesian Ministry of Finance offers corporate income tax reduction of 10%-100% for 5-15 years from the start of the business activity to businesses under certain restrictions.[x] Telecommunication and information businesses can achieve a maximum reduction of 50% if they are investing Rp 500 billion to Rp 1 trillion (approximately USD 74 million).[x] The duration of tax reduction can be extended to 20 years if it promotes national interest.[x] There are other tax incentives provided by the Ministry of Finance, including tax facilities for those conducting business in Special Economic Zones and Integrated Economic Development Zone. Some of the tax incentives allowed to businesses include:

  • Exemption from VAT and LST
  • Postponement of import duty
  • Exemption of excise

There are incentives for individual taxpayers as well. In 2016, the Indonesian government plans to increase the non-taxable income of taxpayers by 50% from IDR 36 million (approximately USD $2,727) to IDR 54 million (approximately USD $4,090).[xi] It is expected to improve purchasing power and household consumption. This would mean great news for a business owner looking to open an English language franchise here.

Conclusion

Jakarta is a fast developing economy with modern facilities where education is of primary importance to families and the government. Due to its large population, moderate proficiency, growing economy and education-centric nature, Jakarta makes an excellent location for an English language franchise. If you are planning to open an education franchise business in Asia, consider Jakarta.

New Horizons English Overview

We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.

The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).

New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.

The New Horizons English teaching method enables students by giving them three key learning advantages:

  1. Learn at your own pace
  2. Learn anywhere, anytime with Online Live®
  3. Learn with your own teacher with Mentored Learning®

All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.

How does it work?

The New Horizons English Method uses the natural method of second language acquisition which focuses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.

The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.

Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.

We genuinely believe now is the right time for a new and modern approach to an English language franchise in Jakarta, Indonesia. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.

Sources

[i] https://www.unicef.org/infobycountry/indonesia_statistics.html

[ii] https://www.ef.com/epi/regions/asia/indonesia/

[iii]https://www.thejakartapost.com/youth/2016/12/15/indonesia-ranks-32nd-in-english-proficiency-index.html

[iv] https://worldpopulationreview.com/world-cities/jakarta-population/

[v] https://www.thejakartapost.com/news/2016/02/22/gdp-growth-why-consumption-still-matters.html

[vi] https://citie.org/cities/jakarta/

[vii] https://www.confindustria.it/Aree/NewsPub.nsf/9E898D4189EDE116C1257C0E002FD5E1/$File/JAKARTA.pdf

[viii] https://www.expatarrivals.com/indonesia/jakarta/lifestyle-and-shopping-in-jakarta

[ix] https://www.iseas.edu.sg/images/pdf/ISEAS_Perspective_2016_16.pdf

[x] https://taxsummaries.pwc.com/uk/taxsummaries/wwts.nsf/ID/Indonesia-Corporate-Tax-credits-and-incentives

[xi] https://www.indonesia-investments.com/tag/item31?tag=1633