Popular in Indonesia, coffee has its own charm among the Indonesian millennials. Therefore, Indonesia's economy also puts its hope in it. (Image via Cashbac)

How coffee may save your business?

Alfonsus Adi Putra
Market & Investment
Indonesia Market
Dec 07, 2019
2109
Indonesia is facing a coffee fever as more people pay more attention to the coffee shops, spreading like mushrooms. For example, coffee shops such as “Kopi Kenangan”, “Janji Jiwa”, and many more are always busy.

It is not a bad thing, however. Indonesian economists at the Institute for Development of Economics and Finance (INDEF) said that the coffee business might be one of the solutions amid the bleak global economy.

Due to the weakening of the global economy, Indonesia needs to find its own source of income. Fortunately, as the world’s fourth-largest population, Indonesia is supported by its 260 million people’s public consumption.

Therefore, as the demand rises, the food and beverage (F&B) business, from corporate to micro, small, medium enterprises (UMKM) in Indonesia will keep on thriving. Frankly speaking, about 92 percent of millennials will keep buying food and drinks even though their wallet says “No!”.

Following the ongoing trend among its millennials, the coffee shop has its own charm.

WHAT ABOUT OTHER BUSINESSES?

Not only these coffee shops but bigger businesses such as restaurants are prospective as well. However, the challenge is that they need to “entertain” the palates of their customers by keep making innovations.

With the rising interest in online shopping, Indonesia can also rely on the e-commerce sector. About 40 percent of e-commerce is on online platforms, while about 60 percent relies on social media to promote their stuff.

Textile business is also having a good time now. Due to the trade war between the U.S and China, the Middle Kingdom is having a hard time in supplying huge textile demand to the U.S. Therefore, the U.S is looking at other options, Indonesia is one of them.

Therefore, Indonesia needs not to worry about its national economy. Many economists believe that UMKMs alone can support Indonesia’s economy. Especially, they projected that UMKM will thrive into double-digit growth, while corporate only single-digit.

Source: https://bit.ly/2DRZfmT

Business , Economy , Trade , Enterprise , UMKM , MSME , ASEAN , Indonesia , Coffee , Textile , Trade-war , U.S , China , E-commerce