Brewing Growth Abroad: Indonesian Coffee Brands Go Regional

Picture Credit: krAsia

Indonesia’s homegrown coffee chains are increasingly looking beyond national borders as growth in their domestic market begins to moderate. After years of rapid outlet expansion across major cities, rising competition, higher operating costs, and shifting consumer spending have made Indonesia a tougher market for aggressive growth. This has pushed leading brands to seek new opportunities abroad, where demand for Southeast Asian café concepts continues to strengthen.

Indonesia remains one of the world’s largest coffee producers, and coffee culture has become deeply embedded in urban lifestyles. Chains such as Kopi Kenangan built their early success by offering affordable, locally inspired beverages tailored to Indonesian tastes, supported by tech-enabled delivery and compact store formats. However, as store density increases in cities like Jakarta and Surabaya, incremental growth has become harder to sustain solely at home.

Against this backdrop, regional markets present an attractive next phase. Southeast Asia’s growing middle class, youthful demographics, and expanding café culture have created strong demand for accessible specialty coffee. Kopi Kenangan has led the charge, expanding into Malaysia, Singapore, the Philippines, India, Australia and Taiwan, often operating under the international brand Kenangan Coffee. Malaysia, in particular, has emerged as a key market, where the company has reported improving profitability and ambitious store expansion targets.

The overseas strategy also allows Indonesian brands to diversify revenue and elevate their brand identity from local players to regional names. While Indonesian roots remain central, often highlighted through flavour profiles and branding, menus are carefully localised to suit different consumer preferences. This balance between Indonesian identity and regional adaptability has helped chains gain traction in competitive international café markets.

Other Indonesian coffee brands are following a similar path, signalling a broader industry shift. What began as a domestic café boom is now evolving into a regional expansion story, with Indonesian chains leveraging production strength, brand familiarity, and operational efficiency. As domestic growth steadies and regional demand brews stronger, Indonesia’s coffee players are positioning themselves not just as national successes, but as emerging regional contenders.