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Cafe culture set to take Jakarta by storm

Source
Straits Times - February 25, 2002

Robert Go, Jakarta – Gourmet coffee is coming home to Java as cafe culture takes hold of Indonesia's yuppies – even in the midst of an economic crisis. The Coffee Bean opened in one of Jakarta's glitziest malls last month.

Starbucks, the world's largest coffee-shop chain, reportedly plans to open in a swanky shopping centre in March. For investors, the draw is obvious: Indonesia's growing middle and upper classes. The country may be in a crisis, but don't tell that to the customers lounging at The Coffee Bean (TCB).

Accountant Edy Subagja, who was at the new TCB in Plaza Senayan, said: "This is nothing unusual. Sure, the coffee is expensive, but it's a good place to hang out." There is a strong demand for "the modern yuppie lifestyle", said TCB managers.

Mr Arifian Gustiandi, operations manager at TCB franchisee PT Tiga Satu Tiga Dwima (TSTD), explained: "The coffee business is booming. It's a matter of getting the right concepts and tapping into what the middle class wants."

A regular mocha-ice-blended drink at TCB costs 25,000 rupiah (S$4.75) – more than a whole day's wage for the average Indonesian factory worker. But those who can afford it are buoyant about consuming products which were previously available only abroad. Many expatriates, accustomed to the international chains' processed coffees instead of local coffee-preparation methods, are also happy with the new arrivals.

Mr Lukman Hakim, assistant manager at TCB, said: "Our Indonesian customers are well-to-do. It's trendy to be seen at our shop. It's not just the coffee, it's the idea of drinking expensive coffee, too."

After opening its first shop here, TCB now plans nine more outlets over the next five years in Jakarta, Surabaya, Bandung and Bali. The irony of it all is that TCB and Starbucks buy raw beans from countries like Indonesia and then process them in the United States or elsewhere before bringing them back to sell at inflated prices.

Although foreign coffee chains are just entering the local market, several home-grown modern cafes have been here since the late 1990s. Mr Eddie Sutanto, the owner of the Daily Bread chain, opened his first shop in 1996 when he recognised how "executives and professionals" needed places to unwind during the business day.

"The original focus was on office complexes, but we're also looking at malls and the mainstream consumers now. There are millions of people out there ready to embrace modern-style coffee drinks," he said. He says the growing competition could expand the market. "Customers may get attracted to Starbucks or The Coffee Bean, but since their products are priced higher, people may shift to us."

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