Oriental Kopi Expands to Indonesia, Mauritius Despite Share Price Decline

Oriental Kopi is expanding into Indonesia and Mauritius through joint venture and franchise agreements, aiming for long-term growth despite a sharp decline in its share price this year.

Oriental Kopi Expands Overseas

Oriental Kopi Holdings Bhd is accelerating its international expansion with plans to enter Indonesia and Mauritius, signalling confidence in its long-term growth strategy despite a significant decline in its share price this year.

The ACE Market-listed food and beverage chain will establish its presence in Indonesia through a joint venture with PT Era Boga Nusantara. Under the agreement, Oriental Coffee International Sdn Bhd, an indirect wholly owned subsidiary of Oriental Kopi, will invest US$480,000 (RM1.96 million) for a 40% stake in the venture, while its Indonesian partner will own the remaining 60%.

The newly formed company, PT Era Oriental Kopi, will focus on opening restaurants across Indonesia, with Jakarta identified as the priority market. Medan and airport locations are excluded from the initial expansion plan. The first outlet is expected to begin operations within one year.

Separately, Oriental Kopi has entered Mauritius through an exclusive franchise agreement with Coffee Time Ltd. The six-year arrangement grants the franchisee rights to develop and operate Oriental Kopi restaurants in the island nation. The first outlet is required to open within 300 days, while the franchisee will pay franchise fees and monthly royalties.

The company said the Indonesian partnership leverages local market expertise and business networks, while the Mauritius venture adopts an asset-light expansion model.

Although both transactions are not expected to materially affect earnings or financial position for the financial year ending Sept 30, 2026, Oriental Kopi expects the overseas ventures to support future earnings growth.

The company believes the expansion strengthens its regional footprint and creates new long-term revenue opportunities.

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