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Hello reader,
As someone for whom caffeine has no effect, it can sometimes be surreal seeing how so many people are dependent on coffee to even function. It’s almost scary, honestly.
Still, I guess if it’s such an important part of everyday life for what seems like 95% of the world’s population, it might as well be affordable. That’s what today’s premium article is about – coffee in Indonesia that goes for as cheap as US$0.43 a cup.
Companies like Kopi Kenangan (through its affordable brand Satu Kenangan), Jago Coffee, and Sejuta Jiwa are all in the affordable brew game.
(That’s so cheap even I might start drinking it.)
Today we look at:
- Indonesia’s cheap coffee boom
- Great Wall Motor entering Southeast Asia, first via Malaysia
- Other newsy highlights such as Tencent’s new hit mobile game and … living skin for robots?
Premium summary
How low can you go?
Image credit: Timmy Loen
Even as someone who can’t fully appreciate coffee – nothing against the beverage, I just prefer tea – the business opportunity in cheap coffee is abundantly clear. Catering to the masses just makes all the sense in the world.
Satu Kenangan’s cheap cups, for example, are aimed at consumers living in rural areas or Tier 3 cities.
- Don’t ask for much: A 2023 SnapCart survey revealed that across all socio-economic backgrounds in Indonesia, most coffee drinkers spend between 6,000 rupiah and 20,000 rupiah (between US$0.37 and US$1.22) for a cup of coffee.
- Gotta give the people what they want: Kopi Kenangan CEO Edward Tirtanata believes that by offering lower prices, Satu Kenangan can reach 3x more consumers than its pricier sister brand. “Satu Kenangan is truly targeting the mass market,” he tells Tech in Asia Indonesia.
- Investor considerations: Investors find affordable coffee chains to be promising businesses. Melina Anlin, vice president of investment at AC Ventures, said this is because their target market is not yet saturated. Investors are also enticed by affordable brands that rely on coffee carts or bikes, as they can turn a profit 2x faster than brick-and-mortar stores.
Read more: Indonesia’s coffee boom enters new phase with affordable brews
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