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Indonesia’s cafe sector is currently growing rapidly with vast business developments and thus can be highly regarded as one of the most profitable business sectors in this modern era. Across the country’s major cities, having a meeting at a café has become one of the favorite activities as part of urban societies’ modern lifestyle. This is evident with the presence of café in almost every corner of the city, ranging from top to mid-range brands. With this phenomenon, a new term – “ngafe” has been created amongst teenagers and businessmen which indicates an invitation to engage in other social activities beyond just drinking a cup of coffee or tea at the café.
There are currently over 10,000 cafes in Indonesia and further outlet growth is expected to be driven by the leading operators who are competing to create the coziest environment and appeal to the consumers’ changing tastes. Between 2013 and 2018, revenues of the Café segment is expected to grow from USD 3.4billion to USD 4.16 billion, a 3.42% CAGR. Growth in new outlets will also be more diverse as leading players will continue to expand beyond shopping centers to universities, hospitals, upscale apartment blocks, office buildings, and standalone stores in residential compounds and areas where Indonesians consumers normally congregate. This situation is expected to continue with a 30% growth rate over the next few years. With abundant business opportunities available, the café sector will provide fresh business outlook and positive influence to drive further growth for local coffee and tea commodities, which Indonesia is recognized as one of the world’s best producers of Coffee and Tea.
The emergence of this new habit of drinking coffee at modern coffee shops or cafes have caused coffee consumption to increase with a 36% rate between 2010 and 2014, according to the Association of Indonesian Coffee Exporters (AICE). Meanwhile, the Tea Board of Indonesia observed that the domestic market still has a lot of potential to develop considerably. This is because despite the country’s high total tea production, only 40% of the national output goes towards supplying for domestic intake, while the remaining 60 % are being exported.
Sharing common interest, Reed Panorama Exhibitions ( RPE ) is collaborating with the Association of Coffee Exporters and Industry of Indonesia ( AICE ) , Specialty Coffee Association of Indonesia ( SCAI ) , Indonesia Tea Board, and the Association of Indonesian Hotels and Restaurants ( IHRA ) to proudly present – Cafe & Brasserie Indonesia to be held on 2 – 4 September 2016 in Hall B , Jakarta Convention Center ( JCC ) . The exhibition will be staged in conjunction with two other exhibitions, the 14th Franchise & License Expo Indonesia and the Retail Solution Expo.
James Boey, General Manager of Reed Panorama Exhibitions stated that “Given robust business development, it is timely for us to introduce a platform such as ‘CAFE & BRASSERIE INDONESIA (CBI)’, one that brings together leading players in the cafe sector, from coffee and tea producers to distributors, machine manufacturers and other supporting businesses. This event has been specifically designed to allow businesses in this sector to exchange information, gain knowledge and be updated on the latest trends. In the effort to foster better cooperation between businesses, CBI will be the right arena to build business network and secure opportunities between entrepreneurs, investors, franchisors and franchisees and other industry-related professionals to establish trade connections and get direct first-hand access to a wide variety of coffee machine and other supporting equipment for their cafe business.
James adds that CAFE & BRASSERIE INDONESIA (CBI)’s presence “is expected to encourage the rise of new café business owners and investors that will support the growth of tea and coffee consumption in Indonesia. We are sure that this event would attract the public’s attention and will be visited by more than 10,000 local and foreign visitors comprising cafe owners, investors, baristas, chef and coffee as well as tea lovers.”
FULL SUPPORT FROM THE INDUSTRY
Indonesia’s coffee processing industry holds bright prospects. As recorded by the Ministry of Industry, the average coffee consumption of Indonesian society has currently reached 1.2 kilogram per capita per year. Pranoto Soenarto, Vice Chairman of the Association of Indonesian Coffee Exporters and Industries (AICE), said that “currently, Indonesia is one of the four major coffee producing countries in the world alongside Brazil, Vietnam and Colombia. Compared to 3 other countries, Indonesia has the most variations of coffee. It is recorded that 67 % of coffee production are for export while the remaining 33 % caters to domestic demand.” Pranoto also added that, ” therefore, AICE welcomes this exhibition as it gives businesses wide opportunities to access the latest innovations in order to meet production needs and market demand. The presence of CBI provides positive influence for the sector, and is certainly capable of increasing coffee demand in Indonesia”.
In addition, A. Syafrudin, Chairman of the Specialty Coffee Association of Indonesia (SCAI) also expressed support for CBI highlighting that, “business development in the modern café sector has been highly innovative. Now people no longer think of coffee as a mere commodity, but also as an art due to its intricate planting, preparation, roasting processes and up to its final packaging or presentation. As CBI gives spotlight to quality standards of coffee, the value of a cup of coffee will increase and it will be appreciated more by coffee lovers and the wider community”.
Support also came from Ratna Somantri, Head of Promotion Indonesia Tea Board (ITB), “I hope events like CBI will continue to be held in order to enhance promotion of tea into the community and boost the level of tea consumption in the country.” CBI can further showcase Indonesia’s strength as the seventh largest tea exporter in the world. Ratna also stated that “With the publicity achieved through CBI, the future role of tea will be augmented to support the tourism industry with the introduction of tea culture, leading also to increase in domestic consumption.”
In addition, the growth of businesses in the café sector will also bring positive impacts to the development of other related industries such as the restaurant and hospitality industries. This is echoed by Sudrajdat, Vice Chairman of Restaurant Development of Association of Hotel & Restaurant Indonesia (IHRA), through their support of CBI. “With the changing lifestyle of people that increasingly conduct meetings at cafes or hotel lounges, this contributes positively to the sector and opens new opportunities for players in the hotel and restaurant businesses. I am optimistic that CBI will deliver a world-class exhibition that will contribute positively to the development of major industries, namely in the field of F & B and other related industries “, Sudradjat shared.
Held over three days, CBI will be filled with a variety of activities ranging from business forum on café & brasserie , seminars, food and beverage , barista and culinary competitions and the Cafe Owner Club that engages visitors through product presentations and workshops . With its unique concept combining business and educational events, CBI will be the right platform for businesses, those working in the F & B industry or any company that wishes to build brand awareness or launch new products.
About Reed Panorama Exhibitions
PT Reed Panorama Exhibitions (RPE) is a joint venture (Joint Venture) between the world’s leading event organizer, Reed Exhibitions and Panorama Group, one of Indonesia’s top conglomerate engaged in tourism, transportation, hospitality and many other businesses. RPE aims to provide quality professional services and promote multi-industry events through cooperation with relevant government agencies, industry partners, trade associations, venue owners, contractors and customers in Indonesia. Currently, RPE organizes ten international exhibitions in Indonesia serving the industry franchising and licensing, maritime, mining, building materials and construction, transportation and logistics as well as consumer sectors through Maternity, Baby & Kids Expo and Comic Con Indonesia. Visit our website at www.reedpanorama.com