Malaysian café chain Oriental Kopi Holdings Berhad is stepping up its international expansion with a joint venture in Indonesia with Erajaya Food & Nourishment and a separate territory franchise agreement covering Mauritius.
The dual-market expansion gives Oriental Kopi two distinct routes into new markets: an equity partnership in Indonesia and an asset-light franchise model in Mauritius. The company announced both agreements on August 6, 2026.
For Indonesia, Oriental Kopi’s wholly owned subsidiary, Oriental Coffee International Sdn Bhd, has entered into a joint venture and shareholders’ agreement with PT Era Boga Nusantara (EBN), also known as Erajaya Food & Nourishment and part of Indonesian retail group PT Erajaya Swasembada Tbk.
The partnership has established PT Era Oriental Kopi, with EBN holding a 60% stake and Oriental Coffee International holding the remaining 40%. The JV will develop and operate Oriental Kopi cafés in Indonesia, initially concentrating on the Greater Jakarta region, or Jabodetabek.
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.
The JV has an initial paid-up capital of US$1.2 million (approximately RM4.91 million). Oriental Coffee International will contribute US$480,000 (about RM1.96 million) for its 40% interest, with the balance contributed by EBN. The Indonesian JV is required to commence operations within one year of the agreement.
The partnership gives Oriental Kopi access to Erajaya’s Indonesian retail network and local market expertise. Erajaya, established in 1996 and listed on the Indonesia Stock Exchange since 2011, had more than 2,400 stores across Indonesia and international markets as of March 31, 2026. Through EBN, the group also operates and develops international F&B brands including Paris Baguette, Bacha Coffee, GrandLucky Superstore, Curry Up and CHAGEE.
Oriental Kopi said the Indonesian market is particularly relevant because of its large Muslim population and the brand’s existing halal-certified positioning. The JV will work towards obtaining the relevant Indonesian halal certification and ensuring its ingredients, food preparation and supply-chain processes meet local requirements.
Beyond cafés, Oriental Kopi also plans to explore bringing its fast-moving consumer goods portfolio into Indonesia, including instant white coffee, kaya and other Malaysian products.
The company said the Indonesian expansion follows its entry into Singapore and represents the next stage of its regional growth strategy. “The expansion follows Oriental Kopi’s entry into Singapore and represents the Group’s next step in growing its regional presence,” the company said in its announcement.
Erajaya Food & Nourishment CEO Jeremy Sim said Indonesian consumer interest in the Malaysian brand had already emerged ahead of its formal entry into the market. “We see that public enthusiasm in Indonesia for Oriental Kopi has grown significantly even before the brand officially arrives here. This is strong validation of the brand and opens a strategic opportunity for Erajaya Group to further strengthen its food and nourishment portfolio,” Sim said.
Mauritius Deal Adds an Asset-Light Franchise Market
At the same time, Oriental Kopi is entering Mauritius through a separate franchise agreement.
Oriental Coffee International has signed a Territory Franchise Agreement with Coffee Time Ltd (CTL), a Mauritius-based integrated F&B operator, granting CTL exclusive rights to develop and operate Oriental Kopi restaurants in the country.
The agreement runs for six years. Unlike the Indonesian JV, Oriental Kopi will not be required to make an outlet-level capital investment in Mauritius. Coffee Time will bear the capital expenditure and operating costs associated with the restaurants.
Under the agreement, CTL will pay Oriental Coffee International the applicable franchise fee and monthly royalty for each restaurant operated. Its first outlet must commence operations within 300 days of the agreement.
The Mauritius deal therefore gives Oriental Kopi an additional international market without requiring the group to fund the physical rollout of stores, while creating potential recurring royalty income.
34 Cafés Form the Existing Network
The international push comes as Oriental Kopi continues to build its existing network. The group currently operates 34 cafés, 31 in Malaysia and three in Singapore.
The Singapore presence represents the company’s first overseas market, while Indonesia and Mauritius now provide two additional international growth platforms using different expansion structures.
The Indonesia investment is expected to be funded through internally generated funds and/or bank borrowings. Research from JF Apex noted that the RM1.96 million commitment represents about 3.63% of Oriental Kopi’s RM53.94 million cash balance reported for 2QFY26, making the investment relatively manageable for the group.
Neither the Indonesia JV nor the Mauritius franchise is expected to have a material impact on Oriental Kopi’s earnings, net assets or gearing for the financial year ending September 30, 2026. The company expects both initiatives to contribute positively to future earnings as the overseas operations develop.
The two agreements effectively give Oriental Kopi a complementary international expansion strategy: Indonesia provides an equity-backed platform with a local operating partner, while Mauritius offers an asset-light franchise route with royalty potential.
With its first Jakarta outlet targeted for the end of 2026 and the Mauritius franchisee required to open within 300 days, Oriental Kopi is now moving from its initial Singapore expansion into a broader regional growth phase.
