Oriental Kopi Holdings Bhd is pushing beyond Southeast Asia with a twin-track expansion into Indonesia and Mauritius, combining an equity joint venture with a pure franchise play that analysts say reshapes how the Malaysian café brand monetises its growing regional profile.
The company disclosed in a Bursa Malaysia filing that its wholly owned unit Oriental Coffee International Sdn Bhd will form a joint venture with PT Era Boga Nusantara (EBN), part of Indonesian retail group PT Erajaya Swasembada Tbk, to bring Oriental Kopi cafés to Greater Jakarta, while a separate six-year Territory Franchise Agreement with Mauritius-based Coffee Time Ltd will introduce the brand to the Indian Ocean island market, according to The Star and The Edge Malaysia.
Under the Indonesian deal, a new company, PT Era Oriental Kopi, will be 60% owned by EBN and 40% by Oriental Coffee International, Oriental Kopi said in a company statement cited by The Star. The Edge Malaysia reported that Oriental Coffee International will invest US$480,000 for its 40% stake, and that the joint venture is required to commence operations within one year of the agreement.
The collaboration “will undertake the establishment, development and operation of Oriental Kopi cafés in Indonesia, with initial expansion focused on the Greater Jakarta area, or Jabodetabek,” the company said in its statement quoted by The Star. The first Indonesian outlet is targeted to open by the end of 2026 at Central Park Mall in West Jakarta, part of the Podomoro City complex, according to the same report.
In an interview with NuFOOD Spectrum Asia, managing director Dato’ Calvin Chan Jian Chern described the Indonesia and Mauritius moves as “a significant step in growing Oriental Kopi’s international presence” and the group’s “next step in growing its regional presence,” echoing language in the company’s bourse filing. Chan also said the decision to enter Indonesia was shaped by “true market suitability” and the “deep love for rich, vibrant flavours” shared between Malaysia and Indonesia.
The Indonesian joint venture will operate restaurants across the country while initially prioritising Jakarta and excluding Medan and airport locations, The Edge Malaysia noted. Through EBN, Erajaya already operates and develops several food and beverage brands in Indonesia, including Paris Baguette, Bacha Coffee, GrandLucky Superstore, Curry Up and CHAGEE, and the broader Erajaya group had more than 2,400 stores across Indonesia and international markets as of 31 March 2026, according to NuFOOD Spectrum Asia.
Market research outlet QSR Media Asia reported that Indonesia’s large Muslim population represents a meaningful opportunity for Oriental Kopi as a halal-certified Malaysian café chain, and said the joint venture will work toward obtaining relevant local halal certification and ensuring that ingredients, food preparation and supply chains comply with Indonesian requirements.
Beyond cafés, the group will explore introducing Oriental Kopi fast-moving consumer goods in Indonesia, including instant white coffee, kaya spreads and other Malaysian favourites, QSR Media Asia added. Oriental Kopi, which opened its first café in 2020 and now operates 34 outlets across Malaysia and Singapore, is listed on the ACE Market of Bursa Securities, the same report said.
In Mauritius, Oriental Coffee International’s agreement with Coffee Time Ltd (CTL) gives the local operator rights to open Oriental Kopi restaurants in exchange for franchise fees and monthly royalties on each outlet, without Oriental Kopi committing capital to the market, according to The Star and The Edge Malaysia. CTL is required to open its first outlet within 300 days of signing, The Edge Malaysia reported.
Analysts view the dual structure as balancing upside and risk across two very different coffee markets. Apex Securities Research told The Star that “Indonesia remains the more meaningful medium-term opportunity, given its sizeable consumer market and the group’s equity participation in the joint venture (JV), while the Mauritius franchise serves as a lower-risk avenue to monetise its brand through recurring franchise and royalty income.”
At the same time, research houses have signalled that earnings benefits will lag store openings. Hong Leong Investment Bank Bhd (HLIB) maintained a “Buy” call with a target price of RM1.28 and said in the New Straits Times it expects commercial operations, franchise fees, royalties and joint-venture profits to start contributing toward the end of the 2027 financial year or in 2028, assuming partners use their full rollout timelines.
Apex Securities kept a HOLD recommendation with an unchanged target price of RM1.04 based on 27 times forecast 2027 earnings, while MBSB Research told The Star it was making no changes to earnings forecasts because both ventures are “not expected to materially impact FY26 earnings,” even as the announcements “improve longer-term growth optionality and support a modest re-rating.”
Those calls come after a volatile year for the stock. The Edge Malaysia reported that Oriental Kopi’s share price had fallen nearly 30% year-to-date as of 6 August 2026, dropping from a high of RM1.49 on 19 January to a low of 88 sen in mid-July, before closing at 99.5 sen and valuing the group at RM1.99 billion, with about RM800 million in market capitalisation erased since the start of the year.
Summarising the market’s stance, HLIB said the Indonesia joint venture and Mauritius franchise “carry insignificant impact on its near-term earnings,” but together give Oriental Kopi a way to tap a high-density Indonesian café market while monetising its brand in Mauritius through fees and royalties, according to its comments in the New Straits Times.
