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Oriental Kopi expansion pairs JV and franchise

Oriental Kopi expansion now spans an Indonesia JV and Mauritius franchise. Analysts say the dual-track model fits very different coffee markets—how far can it go?

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Malaysian café operator Oriental Kopi is pushing its brand beyond Southeast Asia with two new partnership deals announced on 6 August 2026, pairing a joint venture in Indonesia with a territory franchise in Mauritius to expand its network of Oriental Kopi restaurants.

According to a Bursa Malaysia filing reported by KLSE Screener, indirect subsidiary Oriental Coffee International Sdn Bhd has signed a Joint Venture cum Shareholders’ Agreement with PT Era Boga Nusantara to establish PT Era Oriental Kopi in Indonesia, while a separate announcement covered by The Edge detailed a six-year Territory Franchise Agreement with Coffee Time Ltd for exclusive development rights in Mauritius.

The Indonesia venture will focus first on Jakarta and the surrounding Greater Jakarta area, known locally as Jabodetabek, excluding Medan and airport locations, The Edge reported. The Star added that 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 development.

Investment bank Hong Leong Investment Bank (HLIB) described Indonesia as a high-density scale market and said the joint venture leverages PT Era Boga Nusantara’s local market knowledge, business network and extensive retail ecosystem. An I3investor note summarising company disclosures stated that the joint venture has initial paid-up capital of US$1.2 million, with Oriental Coffee International contributing US$480,000 for a 40% stake and PT Era Boga Nusantara holding 60%.

In Mauritius, by contrast, Oriental Kopi is not taking equity. The Edge reported that Oriental Coffee International granted Coffee Time Ltd exclusive rights to develop and operate Oriental Kopi restaurants across the island nation for six years, in exchange for franchise fees and monthly royalties per outlet. HLIB characterised this Mauritius arrangement as “a prudent, asset-light mechanism to secure recurring royalty and fee income in a smaller market with minimal capital deployment.”

The franchise contract is structured around clear timelines. I3investor reported that Coffee Time must open its first Oriental Kopi outlet in Mauritius within 300 days of signing the agreement. If it fails to do so, Oriental Kopi may terminate the agreement or revoke Coffee Time’s franchise rights. HLIB added that monthly royalties remain payable even during operational disruptions or temporary store closures, based on the previous month’s amount.

These two moves follow a period of rapid regional growth. In its FY2025 report, filed with Bursa Malaysia and reproduced by Futunn Newsfile, Oriental Kopi said it operated 25 company-owned cafés in Malaysia as of 30 September 2025 and three cafés in Singapore via a joint venture with Paradise Group Holdings. The same filing noted that the group intended to pursue international expansion primarily through partnership-based models, citing differences in consumer preferences, taste profiles and market dynamics across countries, while keeping all Malaysian outlets company-owned.

On the Indonesia partnership, Jeremy Sim, CEO of Erajaya Food & Nourishment, the business behind PT Era Boga Nusantara, said in an Erajaya press release that the company had “seen strong enthusiasm for Oriental Kopi among Indonesian consumers even before the brand officially entered the market,” calling the collaboration a strategic opportunity to strengthen its food and nourishment portfolio.

Oriental Kopi managing director Dato’ Calvin Chan described the Indonesian venture as “an important new chapter” for the brand in the same Erajaya statement, highlighting what he called a warm welcome from Indonesian consumers and saying the shared culinary culture between Malaysia and Indonesia would help the company “bring authentic Malaysian flavors to the world.”

From a financial perspective, The Edge reported that Oriental Kopi does not expect the Indonesian joint venture and Mauritius franchise to have a material impact on its earnings, net assets or gearing for the financial year ending 30 September 2026, although they are expected to contribute positively to earnings in later years. HLIB estimated that commercial operations, franchise fees, royalties and joint-venture profits from these overseas initiatives are likely to start contributing only toward the end of the 2027 financial year or in 2028 if partners take the maximum allowed timelines to open their outlets.

The FY2025 report indicated that Oriental Kopi’s international plans were already under way at that time, noting preliminary discussions with potential partners in the Philippines, Thailand and Indonesia, and confirming that partnership-based models would be the primary route for overseas growth while the group continues to open company-owned cafés in Malaysia.

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