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Tractus Asia Limited Epicentrum Walk 3 rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940 T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com RAS JAKARTA BUSINESS MATCHING MISSION 16-19 JULY, 2018 POST MISSION REPORT Prepared for Restaurant Association of Singapore August 2018
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RAS JAKARTA BUSINESS MATCHING MISSION 16-19 JULY, 2018 ...ras.org.sg/wp-content/uploads/2017/02/RAS-Indonesia-Mission-Report... · Upnormal and Nasi Goreng Mafia, 2 of the 5 brands

Aug 21, 2019

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Page 1: RAS JAKARTA BUSINESS MATCHING MISSION 16-19 JULY, 2018 ...ras.org.sg/wp-content/uploads/2017/02/RAS-Indonesia-Mission-Report... · Upnormal and Nasi Goreng Mafia, 2 of the 5 brands

Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

RAS JAKARTA BUSINESS MATCHING MISSION 16-19 JULY, 2018

POST MISSION REPORT

Prepared for Restaurant Association of Singapore

August 2018

Page 2: RAS JAKARTA BUSINESS MATCHING MISSION 16-19 JULY, 2018 ...ras.org.sg/wp-content/uploads/2017/02/RAS-Indonesia-Mission-Report... · Upnormal and Nasi Goreng Mafia, 2 of the 5 brands

Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Contents Executive Summary .......................................................................................................................................................... 3

Observations and Key Learning Points .................................................................................................................................. 6

Conclusion .................................................................................................................................................................... 10

Annex A: Program Itinerary .............................................................................................................................................. 12

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Executive Summary

Tractus Asia collaborated with the Restaurant Association of Singapore (RAS) to organize a business matching trip to Jakarta, Indonesia, between 16 and 19 July, 2018. RAS is the pioneer and largest F&B Association in Singapore, with over 400 members representing 700 brands in more than 3,200 outlets in Singapore. 14 representatives of 9 Singapore F&B business participated in the Indonesia trip with the objective of understanding Indonesia’s F&B industry and concepts, all of which are owners or decision makers of their businesses. This trip was carried out with the aim of exploring and learning about the local F&B environment, exporting Indonesian brands into Singapore and also bringing Singapore F&B concepts into Indonesia through a partnership of franchise, joint venture or other appropriate modes of entry or collaborations.

The four-days Indonesia trip included a full day workshop featuring industry experts and established F&B businesses, site visits to shopping malls and restaurants, business-to-business matchmaking session with Indonesian companies, and finally, a visit to the Hotelex & Finefood Expo. Throughout the trip, the delegates were constantly provided with information and insights on how to best enter the Jakarta F&B landscape, as Jakarta is a dynamic gateway into other parts of the country too. Where successful expansion campaigns in the capital city can be translated as future indicator of success for expanding to other cities/ regions in Indonesia. The Singaporean delegates were encouraged to conduct a thorough study and research before making a decision to enter, for example on subjects such as the demographics and consumer habits, managing local hires, logistics, dealing with local authorities, and halal-food concepts.

From a regulatory framework perspective, F&B and restaurant businesses in Indonesia are allowed 100% foreign ownership allowance, while the minimum investment value is currently set at IDR 10 billion (~SGD 1 million). IP protection, a key branding element and issue for companies in the country, were also highlighted. Trademark registration, for example, takes around 2 years to complete and it is recommended to file as soon as possible as Indonesia adopts the “first to file” principle. From a taxation point of view, Indonesia uses a self-assessment system, and restaurant tax shall be on ‘all service rendered’ with 10% rate of total accepted payments and it is exempted from VAT. All local filings and tax procedures in Indonesia are conducted in Bahasa Indonesia, which is another reason why engaging local consultants/firms, or finding local business partners is important for new entrants.

The real estate segment in Jakarta has steadily grown alongside rising consumer spending power and increased tourism, and while major malls such as Plaza Indonesia, Mall Kelapa Gading, Senayan City, remain as the primary option, there is a growing trend of alternative properties such as office buildings, high street, free standing, and public transportation areas. Identifying the right location for the business is necessary as Jakarta’s 10 million population is spread in the North, West, Central, East, and South Jakarta, each having different trends

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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and preferences, for example non-halal food will be more suited to the North and West Jakarta areas, where most of the Chinese-Indonesians reside.

Understanding the consumer habits of Jakarta’s citizens is key. Dining out is no longer just a luxury but a lifestyle, especially for the young consumers. Consumer preferences and trends are ever-changing and businesses are innovating to adjust to these trends. Fusion concepts have grown and expanded, driven by consumer’s curiosity to try out new dining experiences, such as having all three meals in a day in ‘specialist coffee shops’, cheese-rolled Korean wings and ribs made at the table by a waiter, and such new culinary experiences, etc. While Indonesian, Italian, and Japanese food remain popular, consumers are shifting to healthier lifestyle foods and preference for natural, MSG-free food will continue to grow (Salad Stop is a good example of a well-performing new establishment).

Technology is changing the way consumers reach F&B players, and vice versa. Online reservations, home delivery, even digital in-store orders are some of the new changes seen in the industry. Go-food & Grab Food are doing exceptionally well to tap the food delivery niche, and at the same time opening ways for F&B businesses to advertise and generate more revenues. Online presence is necessary as more consumers do online research before visiting a restaurant or ordering food online, and F&B businesses need to maintain good interactive website, social media preference e.g. on Instagram, Facebook, or Twitter, as well as good reviews on sites such as Zomato, TripAdvisor, Qraved, etc. Collaborating with food bloggers and social media influencers is another way to advertise business nowadays, as Jakarta netizens puts a lot of trust in what their favorite celebrities say.

Having halal certifications, although not mandatory at the moment, will attract more Muslim consumers, which makes up about 87% of the population nationwide. As an example, the Chinese family restaurant the Duck King successfully operates five different brands under the Duck King umbrella, all with halal menu except for the Imperial Chef branch, named differently as this brand serves pork dishes.

While it is possible to enter the market as a 100% foreign owned company or forming a joint venture with a local partner, franchising can be considered as well to minimize risk and managing the local requirements and regulations. Babarafi Enterprises, one of our workshop speakers, is an example of a local franchisor which grew from one push cart in 2004 to over 1,300 indoor and outdoor outlets and cafes in 8 countries. Babarafi regularly introduces a range of different outlet setups from small stalls, indoor seated outlets, to container-style outlets, while maintaining standardized quality by having central kitchens to supply ingredients to their outlets. Other example of successful F&B franchise would be Warunk Upnormal and Nasi Goreng Mafia, 2 of the 5 brands operated by Cita Rasa Prima (CRP Group), one of the companies which participated in the B2B speed dating session. A company which accelerated its growth from their first restaurant in 2013 to more than 100 total outlets in Indonesia today. The Kalaha Group, another Indonesia based event participant, also mentioned during the trip that they are exploring new franchising opportunities for their

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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brands of restaurant, namely the Den of Kalaha, Kalaha @ the Wharf, and the Pier by Kalaha, and they are opening 8 new restaurant within the next 2 years after having struck the right kind of strategic partnerships with local Jakarta hotels in the high-end segment.

The mission also included a business-to-business (B2B) matching session for our participants and hosted F&B business owners in Jakarta. Having a trusted local partner will be important for international investors, thus it is important for the delegates to expand their network in Indonesia. A total of 12 companies had previously agreed to come to the session, however due to various reasons only 7 companies made their way to the Four Points hotel, our venue, to join the matching session and speak to all delegates. Tractus Asia led the session and ensured that the Singaporean participants were able to sit and talk with most of the Indonesian attendees to explore various potential business opportunities.

Before coming back to Singapore, the delegates visited the Hotelex & Finefood Expo, a trade show for F&B and hospitality businesses, where over 650 exhibitors showcased the latest product, innovations, technologies and service in the F&B and hospitality market. The expo was beneficial to the delegates as they were able to see some of the trending technologies within the F&B industries both in Jakarta and internationally as many of the exhibitors came from abroad.

According to the feedback we got from the delegates and the RAS team present, Tractus Asia felt that this mission has been educational for the Singaporean delegates to understand the local market and F&B concepts and to expand their network here. We are looking forward to seeing more partnerships as a result of this trip, where Singaporean businesses can expand or invest into Indonesia or Indonesian brands exported to Singapore.

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

Observations and Key Learning Points

During their trip the delegates had the opportunity to gain knowledge and understanding about F&B industry in Indonesia, some of the points are as follows:

Business Establishment and Regulatory Framework The restaurant business in Indonesia is 100% opened for foreigners and there is no maximum number of shares which can be owned directly by foreign entities. Foreign owned companies are referred to as PT PMAs or limited liability Company with foreign direct investment. Even if there are only 1% of the shared are owned by foreign individual or company that still considered as a PT PMA and are subject to minimum basic capital requirement of roughly SGD 1,000,000 for each business classification, excluding land and properties and it should be shown in the investment plan.

Foreign trademark owners can only file a trademark application through a licensed intellectual property consultant or attorney either electronically or offline. If there is no opposition to the application by a third party, the registration process will be completed within 1.5 to 2 years. If there’s opposition the process might take even longer. For trademark filling it is required to have a power of attorney, statement of mark ownership, logo and list of goods and service. The stage of trademark filing are; Filing, 2 months of publication, substantive examination, decision to register/ reject and issuance of trademark certificate.

OPCO, a highly successful Singaporean owned Indonesian F&B group, recommended that foreign businesses should at least have a local general affairs manager as excessive bureaucracy is still present and corruption are still prevalent, where their survey said that companies spend 0.5% of their revenues on unofficial payments. When managing manpower , companies might need to do some further training and seminar because of the low minimum wage and education standard on the majority of the labor force. Companies should also be aware about Indonesia political issues, mass demonstrations are common in Indonesia and companies’ policies/ plan might change drastically with the change of government. A 20% sales drop is generally seen in F&B businesses in Central Jakarta where most demonstrations/ protests happen most.

Commercial Property Market Outlook The cumulative supply and demand of retail market is expected to grow steadily for the next few years while the expected occupancy remains stable, causing the rent in Jakarta to continue increasing. With the current asking rent price in major malls in Jakarta ranging from IDR 300,000 – IDR 1,500,000 sq m/ Month. Some of the major malls in Jakarta are Plaza Indonesia, Mal Kelapa Gading I – V, Plaza senayan, Mall Taman Anggrek, Pondok Indah Mall 2, Senayan City, Pacific Place, Grand Indonesia, Central Park Mall, Lotte Shopping Avenue, Lippo Mall Puri, Aeon mall JGC, Neo Soho, etc. These shopping malls house major restaurant

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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brands such as The Duck King, Sushi Tei, Pancious, Kitchenette, Bakerzin, Penang Bistro, Kintan Buffet, Magal, Coco Ichbanya, Gyu-Kaku, Hejo Heko, Marugame Udon, Shaburi, Steak Hotel by Holycow and many more. Some of the malls like Senayan City and Neo Soho also starting investing in modern and fancy food courts with open kitchen area that serves all-day dining food and beverages. This open kitchen food court seems to be a trend in upscale malls as a way to draw in their customers (both residential and corporate) by providing a newer, more interactive experience. Both the food courts we visited had built this concept whereby customers can see how chefs are preparing the food ‘live’.

The demographics in Jakarta varies between areas and now also include the nearby cities as well such that locals now have a new term for this collection of townships based along geographic and demographic lines – JABODETABEK. This term is heavily used within the F&B and real estate community of the city. This abbreviation stands for Jakarta, Bogor, Depok, Tangerang, and Bekasi.

South Jakarta is where most of the middle-upper class citizens reside and has some of the largest, most well-established malls. North and West Jakarta are where most of the Chinese-Indonesians live and thus where many of the non-halal food businesses have been established and grown there. Younger families are beginning to settle in West and East Jakarta, and these markets are not as mature as the North or South areas. Expansion to these areas presents a lot of potential. Central Jakarta is mainly government offices, CBDs and residences of the upper class families and although the population is not as dense as the other areas, we are seeing high-end establishments and fine dining restaurants setting up shop here.

Taxation Framework Corporate income tax in Indonesia is calculated from the profit or loss statement with certain tax adjustment and allowable debt to equity ratio at 4:1. Tax losses can be carried forward for 5 years maximum. Final tax for small and medium enterprises rate is 0.5% from gross turnover with the threshold of IDR 4.1 Billion per annum based on the previous year’s total gross turnover.

Restaurant services are exempted from value added tax. If, however, the restaurant taxpayer utilizes offshore service or intangible goods, these will be subject to 10% VAT. Restaurant ’s taxable activity shall be service rendered by the restaurant with 10% rate from total payments accepted and will be payable on a monthly basis

Case Study and Site Visits During our workshop, RAS delegates were introduced to some of Indonesia’s food services that has grown around the local F&B industry trends such as the stories of OPCO and Go-Jek. OPCO is one of the most recognizable companies in Indonesian F&B industry, and CEO Chris Kuang presented several practical and insightful factors that Singaporean businesses will

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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need to consider when establishing services here. Especially stressing on the bigger picture areas about the market, acquiring a good understanding about labor law and education/training standards for managing the manpower, the ability to solve the ad-hoc logistics challenges, dealing with local authorities and keeping in mind halal or non-halal trends. RAS delegates also had the chance to learn about Go-Food from Go-Jek Indonesia.

Go-Food is a platform through which customers can order from various listed restaurants partner and receive deliveries directly to their location. Go-Food restaurants/merchant partners will get higher visibility, increased number of customers, and more business potential for their restaurant by gaining a new channel to market their brand. Since its inception in 2015, Go-Food today has 188,687 restaurant partners with 4,064,789 active users in one month. Go-Food restaurants/merchant partners will get higher visibility, increased number of customers, and more business potential for their restaurant by gaining a new channel to market their brand. Out of 100 partner restaurants, the transformation performance of being a Go-Food partner can jump into an average of 263% of transaction value within a month.

Food delivery service works well in Indonesia. Indonesians, especially the youth, are tech-savvy and almost everyone has mobile internet access today. Traffic in most of the big cities, especially Jakarta, is a key element and almost always heavily congested with relatively subpar public transport infrastructure. People do like going out to eat, however having food delivered to you saves time and effort especially on weekdays. Food delivery services like Go-Food and Grab have shown the ability to scale up rapidly by onboarding thousands of merchant partners and a large number of motorbike drivers to help deliver. It is estimated that by the end of 2017, there were 2.5 million motorbike drivers working for Go-Jek and Grab combined. These drivers are active almost 24 hours, meaning that whenever people want to order food at any time someone will be ready to deliver to them as long as the merchant can supply the order.

The food delivery segment, however, does not usually affect the number of walk-in restaurant consumers as Indonesians want to get the experience of dining out, especially as a family or with their colleagues and friends in groups. Dinners or meals on the weekends are usually spent outside at restaurants/ dining places. Also, not all meals are suitable to be eaten at home as the quality and experience diminishes, such as hot food, soups, or 3(or more) -course meals. Indonesians tend to make small delivery orders, and usually only at times where it is not convenient for them to go out, such as lunch breaks at office hours, or late night snacks.

RAS delegates were also introduced to Indonesian biggest chain of Turkish kebab franchise, Babarafi Enterprise. Babarafi Enterprise currently has more than 1,300 kebab outlets across Asia, such as in Malaysia, Philippine, Srilanka, Brunei Darussalam, China, etc. One of their secrets to success was their ability to adapt their menu to local tastes, while utilizing central kitchens supplying spices and ingredients to their outlets to ensure standardized quality. They

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

9

also innovate their concepts and their outlets vary from small stands for takeaways to comfortable indoor seating restaurants.

Another example of successful innovative franchise is the Kalaha Group. The group focuses on younger demographics and has a restaurant located in the middle of a residential condominium as well as two beachside restaurants in North Jakarta, which is designed to appeal to the youth with a casual dining concept. Kalaha is trying to introduce an innovative concept whereby customers can order any kind of food, outside of its established menu, and the chefs will be trained to prepare it. Kalaha Group has also developed a strategy to partner with the right investors who can franchise its ‘millennial-focused’ F&B concepts with a minimum of USD 15,000 investment and preferably located in or near higher end hotels.

A site visit to the Grand Duck King allowed the participants to learn specifically about a well establish Chinese cuisine restaurant in Indonesia which has five different sub-brands that provide halal or non-halal food and covers middle-upper class consumer segment. The Duck King restaurants are all successfully marketed to target different price points, and the Imperial Chef brand was specifically developed to attract the non-halal food consumers, while maintaining their Muslim consumers in their original Duck King restaurants.

During the visit to Plataran, the restaurant gave the delegates valuable insights about fine dining restaurants in Indonesia which targets upper-class consumer segment such as government agencies, embassies, or corporate clients, and how parts and areas of their restaurants are available for rent starting from SGD 1,500 for 4 hours usage of a 10-person room. This allowed the delegates an idea of how such fine-dining establishments price themselves spatially.

Tugu Kunstkring Paleis gave a brief introduction about their business, style and food influences as well as typical customer/clientele. Tugu Kunstkring Paleis was originally built as an art house that displays world-class masterpieces of Vincent van Gogh, Pablo Picasso, etc. Tugu is as much restaurant as an art gallery, attracting the art and historical enthusiast with their fine dining restaurant experience that also exhibit art. The establishment is carefully curated as a truly unique reflection of Dutch-Indonesian history.

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Conclusion and Recommendations

The RAS mission to Indonesia was successful and provided an educational platform for the participating members of RAS on the Jakarta F&B landscape.

Some of the key suggestions/recommendations that Singapore restaurant owners should consider when thinking about expanding their business into Indonesia are:

• Demographics: Understanding the demographics of the business areas in Jakarta, and to adjust F&B concepts to the dynamic, youth-driven, dining habits in the Jakarta market. It is also critical to consider halal-food certification and menu options to win the predominantly Muslim consumer base. New investors should also keep in mind JABODETABEK.

• Legal/Regulatory: Seeking a reliable Indonesian attorney to help register your trademark as early as possible as Indonesia adopts ‘first to file principle’ and it might take a few years to file. A good firm will also help establish a PT PMA (foreign owned limited liability) company.

• Representation/Management: Appoint a local general affairs manager to help with local bureaucracy and dealings, and to get a better hold of the local culture and dining habits

• Tax: Fully understand the intricacies around taxes applicable to restaurant businesses, such as Income Tax, Value Added Tax and Restaurant Tax (which is exempted from VAT).

• Technology: Consumers have become more tech-savvy and online presence is key. More consumers do online research before visiting a restaurant or ordering food online, and F&B businesses need to maintain interactive websites, good online reviews, and collaborating with food bloggers and social media influencers.

• Delivery Channels: Partnering with online delivery services such as Go-Food, Grab Food, etc, to potentially grow the business, while also maintaining attractive websites and social media presence, good online reviews, and collaborating with food bloggers and social media influencers. Having a small, quick-service restaurant but with a focus on partnership with online delivery services, such as Go-Food, Grab Food, etc, is also a good business model nowadays, as the business will be able to reach out to more consumers while keeping capital investment and operations cost lower.

• Market Entry Routes: Other than joint ventures or mergers & acquisitions, consider franchising as another less-risk way to enter the Indonesian market, as we see many success stories of local and international businesses getting traction and sustainable growth in the country through this route

• Payments: Although most Indonesians pay with cash, having other cashless payment options is necessary such as debit/ credit card payments, and other digital channels provided by startups such as Go-Pay, GrabCash, TokoCash, OVO, Doku, etc. These payment systems offer loyalty points, cash back, or other promos which ultimately helps the merchants/ F&B businesses to attract and retain Indonesian consumers who,

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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from a consumer behavior and price sensitivity perspective, have a key keen eye for promotions and discounts

Adding to the above, seeking the right local business partners is key as this will benefit the entry/ expansion efforts on multiple levels, from the regulatory perspective to the day-to-day operations such as labor management, marketing, and more. Engaging local consultants can be a good first start to better define market opportunities, find the right business partners, and build an effective market entry plan.

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

Annex A: Program Itinerary Sun, 15 July 4:00 pm Flight SQ960

Arrive at Jakarta Soekarno-Hatta International Airport T2

6:30 pm Check in Four Points Hotel

Mon, 16 July (Workshop Agenda) 10:00-10:45

1st Speaker: Mr. Emirsyah Dinar Senior Associate, AFFA Intellectual Property Rights Email: [email protected] Profile: Emirsyah Dinar has numerous experiences in marketing, consulting and communication. As an Indonesian intellectual property consultant in Indonesia and Timor Leste, he specializes in an in-depth investigation, counterfeiting measures and customs procedures.

Learning points: Trademark Filing in Indonesia

o Foreign TM owner can only file a TM application through a licensed IP consultant/attorney within 1.5 to 2 years’ registration process.

o For TM filing it is required to have power of attorney, logo, statement of mark ownership and list of good & services.

Company Establishment o Foreign owned companies are referred to as PT

PMAs with foreign direct investment with min. basic capital of SGD 1 million.

o There should be at least 2 shareholders and at least 1 commissioner and 1 director have to be appointed.

Share ownership o Restaurant business is 100% open for foreigners and

there is no maximum number of shares which can be owned directly by foreign entities.

10.45-11.30

2nd Speaker: Mr. Steve Sudjianto Retail Services Senior Associate Director, Colliers Indonesia

Learning points: Jakarta Retail Market Overview

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Email: [email protected] Profile: Steve Sudijanto has more than 20 years of experience in providing marketing consultancy services from the start to finish of a project for developers/investors and have been successful in his project such as SAVE MAX Grosir Store Project in Grand Serpong Mall, Citywalk Lippo Cikarang, Citywalk Sudirman FRASERS Hospitality investment transaction and CITADINES Serviced Apartment Oakwood Shopping Arcade.

o Cumulative supply and demand of retail market is expected to grow steadily for the next few years while the expected occupancy remains stable.

o Service rent charge in Jakarta keep increasing. Expansion Procedure

o Minimum investment to establish a PT PMA is SGD 1 million.

o Action plans suggested to international brand to open business in Indonesia are market & legal study, source of financing, right business format and property.

11.30-12.15 3rd Speaker: Ms. Yuliana Kurniadjaja Taxation Services Partner, PwC Indonesia Email: [email protected] Profile: Yuliana Kurniadjaja has extensive experience in tax planning, restructuring, and modeling for various business ventures. She has been involved in PwC numerous tax advisory assignments on corporate mergers and acquisitions, tax due to diligence investigations, cross-border transfer pricing issues and defense cases, handling tax refunds, secured favorable tax rulings and tax dispute resolution cases.

Learning points: Overview of Indonesian Tax System

o Corporate income tax are calculated from the P/L Statement with certain tax adjustment with allowable DER is 4 : 1 and tax losses can be carried forward for 5 years max.

o Final tax for small and medium enterprises rate are 0.5% from gross turnover with the threshold of IDR 4.8bio per annum based on the previous year’s total gross turnover.

Restaurant Tax o Restaurant services are exempted from value added

tax. If the restaurant taxpayer utilizes offshore services or intangible goods, these will be subject to 10% VAT.

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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o Restaurant tax object shall be services rendered by the restaurant with 10% rate from total payments accepted and payable on a monthly basis.

14.15-14.45 4th Speaker: Mr. Chris Kuang Chief Executive Director, OPCO Indonesia Email: [email protected] Profile: Chris Kuang has specialization in restaurant, bar and club management, food service and production, central kitchen management, setup franchise business model, merger and acquisition, supply chain management and F&B consultancy. He directs and oversees the operations, marketing and finances of OPCO Indonesia groups of restaurants, central kitchen, and consultancy business.

Learning points: OPCO Establishments

o OPCO has been established in all over Indonesia with various concepts such as clubs, lifestyle, casual dining, service, and consumer goods

Things to consider before establishing F&B business in Indonesia o Indonesia market overview: population, GDP,

consumer lifestyle, industry trends. o Managing manpower: labor law, education

standards, spending power. o Logistic challenges: importing ingredients & clearing

customs. o Dealing with local authorities: politics & governance,

corruption, social stability. o Halal or Non-Halal food trends

14.45-15.15 5th Speaker: Mr. Benedict Kevin Regional Head of Sales, Go-Jek Indonesia Email: [email protected] Profile: Mr. Kevin has plenty of experience in different companies before becoming the Regional Sales Head at GO-JEK. He has been the Team Lead

Learning points:

• Go-Jek overview o Go-Jek is an on-demand mobile platform which

provides a wide range of services that includes transportation, logistics, mobile payment, food delivery, etc.

o Speed, innovation and social impacts to improve welfare and livelihoods through technology.

• Go-Food service in Go-Jek

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Manager and Area Account Manager at Groupon Indonesia, Regional Key Account Manager at D-Link South East Asia and Business Banking Assistant Manager at Maybank.

o Go-Food is a platform through which customers can order from various listed restaurant partners and receive deliveries directly to their location

o Go-Food restaurant merchants get some benefits to increase awareness and business potential of their restaurants

15.30-16.00 6th Speaker: Mr. Khalil Idaoumahmoud International Manager, Babarafi Enterprise Email: [email protected] Profile: Experienced in Asset Management at Barclays Wealth, Investment Management in Monaco Monte Carlo, Business Administration and Management in Nestle company HQ in Switzerland and International Business Management at Allianz Group in Munich, Mr Khalil has joined PT. Baba Rafi Indonesia in 2017 to handle the its international division and worldwide expansion.

Learning points:

• Strong, reliable franchise story of the biggest kebab chain in the world o With the supports on operation, marketing, supply

chain & sourcing, RnD, real estate, construction, and training from Baba Rafi management teams to each franchisee and master franchisee. Innovative applications for their kebab franchise through creative pushcarts and even containers

16.00-16.30 7th Speaker: Ms. Iis Juliana Nursanti & Ms. Dyan Okvitasari General Sales Managers Tugu Kunstkring Paleis Email: [email protected]

Learning points:

• Introduction of the restaurants owned by Tugu Hotels & Restaurants o Cuisines influence, design and themes of each

restaurant, private room types, minimum spending, as well as typical customers/clientele

16.30-17.00 8th Speaker: Mr. Herman O Sitompul Learning points:

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Food and Beverage Manager Kalaha Group Email: [email protected] Profile: Herman O Sitompul has been acting as Kalaha group’s F&B Manager since July 2017, where he was running three successful restaurants in Jakarta; The Den of Kalaha, The Pier and The Wharf. He has plenty of knowledge within the Indonesian F&B industry with previous experience as Operation Manager at Shabu Shabu Express, Locale24 Diner & Bar, Wraps & Roll, and as Manager of Kitchenette.

• Overview of the restaurants owned by Kalaha Group o Design and theme, types of cuisine, target customer

markets

• Expansion plans in the form of franchise opportunities

Tue, 17 July

10.00-11.30 Site Visit 1: Neo Soho Mall Address: Jl. Let. Jend. S. Parman Kav. 28 West Jakarta, Indonesia Website : www.neosohojakarta.com Host: Fivi Ariyanti, Leasing Senior Manager Introduction: Neo Soho is a new shopping center icon by Agung Podomoro Land with approximately 197,000 sqm site area and leasable are 44,931.43 sqm. Neo Soho is connected to Central Park Mall through Eco Sky Walk, the iconic 250-m footbridge with beautiful panoramic view of surrounding Podomoro City skyline and the underground tunnel.

Learning points:

• Introduction to Neo Soho Mall o Developed by Agung Podomoro Land o Strategic location in West Jakarta area, and

surrounded by apartments/condominiums and corporate offices

o Launched in 2016 with net leasable area of 44,450 sqm

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Targeting the upper middle consumers, Neo Soho presents Extraordinary Anchor Tenants such as Central Department Store with an area of 18,155 sqm and 6 stories high with their newest and latest concept, Jakarta Aquarium with an area of 7,200 sqm, and Open Kitchen with an area of 1,800 sqm. The Open Kitchen food court serves all-day dining food and beverages with a total of 23 food stalls. Neo Soho also presents delightful tenants such as the famous Pablo Cheese Tart from Japan that opens their first branch in Indonesia, Born Ga, Chef Tony’s Popcorn, Coco Ichibanya, Gyu-Kaku, Hejo Heko, Imperial Lamien, Kkuldak, Kitchen by Pizza Hut, Marugame Udon, Mugimaru, Provence Bakery, Shaburi, Steak Hotel by Holycow, and many more.

12.00-13.30 Site Visit 2 & Lunch: The Grand Duck King (Asia Culinary Inc) Address: Grand Indonesia East Mall, Level 3A Jalan M.H. Thamrin No. 1 Jakarta, Indonesia Website : http://asiaculinary.menu/index.php Host: Sussy Suwarni, Group Marketing Manager Introduction: Asia Culinary Inc. has a wide range of restaurants brands with a wide variety of distinctive cuisines from around the world, blended and served specifically to indulge the Indonesian people’s tongue.

Learning points:

• Introduction to Duck King o Started as a small shop in Senayan area in 2003, and

today operates 5 different brands [The Grand Duck King Signature, The Grand Duck King, The Duck King, Imperial Chef (pork restaurant concept), and The Duck King Noodle and Kitchen (Lamian restaurant)]

• Also owns other brands such as Fook Yew, Classified, Tenya

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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The company owns brands such as The Grand Duck King Signatures, The Grand Duck King, The Duck King, Imperial Chef, Culina Rice and Noodles, Classified, Tempura Tendon Tenya, and Fook Yew.

14.30-15.30 Site Visit 3: The Den of Kalaha Address: Somerset Grand Citra Lt. G, Jalan Prof. Dr. Satrio Kav. 1, Setiabudi, RT.5/RW.2, Kuningan Tim., Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12940 Host: Herman Sitompul (F&B Manager) Introduction: The Den of Kalaha is the latest restaurant own by PT.Kalaha Tan, at one of the big business districts in Jakarta located in Kuningan. It is a casual dining concept restaurant with 800m² and able to accommodate 300 to 500 people. The Den of Halaha offer a variety of western food such as Pan Seared Salmon, Foie Gras, Seafood Platter, Seafood Paella, Spaghetti carbonara, Escargot and more. The restaurant also includes a wide assortment of alcohol beverages in their Bar menu as well.

Learning points:

• Introduction to Kalaha Group and its expansion plans o Kalaha is opening franchise opportunities with

minimum 15,000 USD investment o Has agreed with Amaroosa hotel chain to open 8

restaurants in the near future

• Kitchen visit

16.30-17.30 Site Visit 4: Senayan City Address: Jl. Asia Afrika, Jakarta, Indonesia Website: https://www.senayancity.com Host: Jaclyn Halim, Leasing GM

Learning points:

• Developed by APL (together with Neo Soho)

• Currently undergoing major redesign and reallocation of tenants

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Introduction: Senayan City is the iconic shopping destination that represents the epitome of top-tier shopping and lifestyle experiences. Compromising a unique combination of prestigious offices, high-end shopping, entertainment and residences which the 3.5 million square feet complex offers a truly inspiring working, shopping and living experiences. Established in 2006 as a leading shopping destination attracting over 24 million visitors annually, with more than 350 stores featuring international premier brands, flagship stores, and unique concept stores.

• At the moment is 100% leased (even the F&B spaces) and the agreements are at minimum 5-year contract

Wed, 18 July

10:00-11:00 Site visit 5: Plataran Menteng Address: Jl. H.O.S. Cokroaminoto No. 42, Menteng, Jakarta, Indonesia Website: https://www.plataran.com/venues-dining/plataran-menteng Host: Yurike Maeda, Sales Manager Introduction: Plataran Menteng is a restaurant that represents the colonial residence of noble families domiciled in Jakarta. Located in quiet and strategic place it is perfect location for all-day neighborhood restaurant.

Learning points: Introduction of the history behind the building, which

was originally a health clinic and now a fine dining location

Introduction to the various rooms and areas rentable within the restaurants

Typically visited and booked by government agencies, embassies, or company gatherings

Considered as one of the top 5 fine dining restaurants in Jakarta

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Savor the rich tapestry of traditional Indonesia flavors in authentic dishes and tasting menus, served within elegant dining rooms, a private dining room with glass roof and walls, a rooftop lounge, and indoor and outdoor courtyards home to trees more than a hundred years old. The history and heritage that converge at Plataran Menteng create an unparalleled dining experience that is nothing short of exquisite, crafted for those who appreciate Indonesia’s rich history and wish to experience truly elegant Indonesian cuisine.

11:30-13:00 Site Visit 6 & Lunch: Tugu Kunstkring Paleis Address: Jl. Teuku Umar No.1, Menteng, Jakarta, Indonesia Website: https://www.tuguhotels.com/jakarta/kunstkring Host: Aleksandar Grujic, PR & Communications Manager Introduction: Tugu Kunstkring Paleis is an excellent example of the Dutch Rationalist architecture which has introduced innovative elements to classical architectural designs to better suit the tropical climates and conditions of old Batavia. In 2013, the Tugu Hotel and Restaurants Group restored and reintroduced the Kunstkring to its original splendor. The ground floor currently houses

Learning points: Introduction to the restaurant, the Dutch

heritage/history and art gallery Brief overview of the hotels and restaurants owned by

Tugu in Indonesia Discussion on menu and the experiences clientele get

when visiting Tugu

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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a restaurant, lounge, wine tasting room, café and gift shop. Upstairs, a vast and open gallery offers art exhibitions and the occasional auction. This restaurant serves Indonesian Cultural Dining: Betawi Rijsttafel. The Betawi or Batavia cuisine is heavily influenced by the Chinese and Malay, as well as Arab and European cuisine, to neighboring Sundanese and Javanese cuisine.

14:00-17:00 Business to Business Matching Session Participating Indonesian companies:

• Champ Resto Indonesia

• Babarafi Enterprise

• Solaria

• Red Bean Indonesia

• Sriboga Raturaya

• Kalaha Group

• Cita Rasa Betawi

• Sarimelati Kencana

• Pancious Tirta Jaya

• Mugi Rekso Abadi

• Cita Rasa Prima

• Puyo Indonesia Kreasi

The participating Indonesian companies were interested to expand their network with Singaporean business owners and explore business opportunities in both Indonesia and Singapore with the delegates. Companies such as Kalaha Group, Babarafi Enterprise, Puyo Indonesia Kreasi, Pancious and Cita Rasa Prima were invited as they are excellent examples of businesses who adjusted their restaurant concepts towards the young, middle class population in Indonesia. Franchising: While most of the companies were looking for investors or partners to expand their business further in Indonesia, some were seeking franchising partners/opportunities to export their brands to the Singaporean market; Babarafi Enterprise, Cita Rasa Prima, Pancious Tirta Jaya, and Puyo Indonesia Kreasi. Stand-alone brands: Companies such as Champ Resto, Solaria, Red Bean, Pancious, Cita Rasa Betawi, Mugi Rekso Abadi, Sarimelati

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Kencana, Sriboga Raturaya, were looking for investors/strategic partners who would be interested in investing in their brands for further expansion within Indonesia. Throughout the session, the RAS delegates were not only able to expand their networks, but also to learn about the deeper insights and practices of operating an F&B business from the perspectives of the participating Indonesian companies.

Thu, 19 July 10:00-13:30 Visit to Hotelex and Finefood Indonesia 2018

Address: Jakarta International Expo (JIExpo), Kemayoran - Jakarta, Indonesia Dates & opening hours: 18 to 20 July 2018, 10:00 am to 6:00 pm Hosts: Sarah Novianti, Promotion Manager Website: http://www.hotelexindonesia.com/ Introduction: Hotelex and FineFood Indonesia is the country’s premier international food and hospitality event, attracting key trade-only buyers from all sectors of the hospitality and specialty retail industry. Over 650 exhibitors will showcase the latest product, innovations, technologies and service in over 15,000 m2 exhibiting space to connect with over 12,000 qualified buyers.

The RAS delegates were hosted by the event organizers, represented by Mrs. Sarah. The delegates were given anintroduction of the Expo followed by a quick tour around the Expo by Mrs. Sarah. Some of the highlighted local and international food and foodservice brands at Hotelex and Finefood Indonesia 2018 are Liebherr, Modena, Gerci, Ellane, Luigi Bezzera Acadia, Kinco, BT Cocoa, Unox Asia, Saint James and Indo Porcelain. The delegates were keen on visiting the expo and were free to explore the venue on their own after the introduction by the event organizer.

17:00 Depart for Singapore Flight Number: SQ961

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Tractus Asia Limited Epicentrum Walk 3rd Floor, Suite A-306, Komplek Rasuna Epicentrum, Kuningan, Jakarta INDONESIA 12940

T: +62.21.2991.2275 F: +62.21.2991.2273 [email protected] www.tractus-asia.com

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Arrive at Singapore Changi Airport at 7:50 pm End of Mission

Mission Staff Contact Information

Mr. Edwin Fong, Executive Director Restaurant Association of Singapore M: (65) 9674 3958 E: [email protected]

Ms. Sarah Loke, Senior Manager Restaurant Association of Singapore M: (65) 9363 7549 E: [email protected]

Mr. Jacky Chen, Assistant Manager Restaurant Association of Singapore M: (65) 9138 9760 Email: [email protected]

Mr. Gagas Pratomo, Consultant Tractus Asia (Jakarta Office) M: (62) 821 1063 1373 E: [email protected]

Mr. Udai Panicker, Country Manager Tractus Asia (Singapore Office) T: (65) 9075 2899 E: [email protected]

Four Points by Sheraton Jakarta Tel: (62) 21 390 2226 Add: Jalan MH Thamrin Kav 9, Jakarta 10350, Indonesia