Indonesian coffee chain Fore Coffee plans to expand into the doughnut business later this year after its planned initial public offering (IPO) on the IDX. In an unrelated development, Indonesian sharia digital bank Bank Aladin Syariah has laid off 25% of its employees.
Bank Aladin’s layoff
Indonesian sharia digital bank PT Bank Aladin Syariah Tbk has laid off 25% of its employees as part of its sustainability strategy, according to a statement on Friday.
Previously known as PT Bank Maybank Syariah Indonesia, the bank was acquired by investment firm PT NTI Global Indonesia in 2019 and subsequently rebranded as Aladin Global Ventures. Following the acquisition of Maybank Indonesia, the lender transitioned from a traditional sharia bank to a fully-digital sharia bank.
In February 2021, Bank Aladin went public on the Indonesia Stock Exchange (IDX), raising 515 billion rupiah ($34.56 million) through an initial public offering (IPO).
In June 2022, Indonesian retail chain Alfamart acquired a 2.2% stake in Bank Aladin for 500 billion rupiah. The two companies have since collaborated on cash withdrawal and payment transaction services across Alfamart’s retail network.
For the January–September 2024 period (9M 2024), Bank Aladin’s net loss narrowed to 79 billion rupiah, compared to 145.7 billion rupiah in the same period of 2023. DealStreetAsia had previously reported that the bank expected to turn profitable by the end of 2024.
In 9M 2024, the lender recorded salary and employee benefit expenses of 153.8 billion rupiah, up from 141 billion rupiah in the same period of 2023. These expenses accounted for the largest portion of the bank’s total operational costs, which stood at 386 billion rupiah.
Fore Coffee to enter doughnut business
Fore Coffee has announced plans to enter the doughnut business in the third quarter of 2025 as part of its expansion strategy following its stock exchange listing, according to top executives at a media briefing on Friday.
Muhammad Fahmi Rachmatullah stated that the doughnut business will be operated under its subsidiary, PT Cipta Favorit Indonesia (CFI). “We will test the market first by opening several stores in malls. We are not allocating a significant investment for this business initially,” he said.
According to its IPO prospectus, Fore Coffee aims to raise 379.76 billion rupiah (approximately $23 million) from its IPO. Of this, around 18% will be allocated to CFI to open 30 new outlets across Java, Kalimantan, Sulawesi, and Bali. The funds will be deployed gradually from 2025 to 2027.
Meanwhile, around 76% of the total proceeds will be used to open 140 new Fore Coffee outlets across key regions, including Jabodetabek, Java, Sumatra, Kalimantan, Sulawesi, and Bali, by 2026. This year alone, the company plans to open 72 new outlets. Currently, Fore Coffee operates 245 outlets in 45 cities across Indonesia and Singapore.
“Domestic expansion will remain Fore Coffee’s main priority in the coming years, as coffee demand in Indonesia continues to be strong,” Fahmi explained.
Vico Lomar, President Director and CEO of Fore Coffee stated that the company targets revenue growth of 40-50% this year. For the first nine months of 2024 (January-September), Fore Coffee recorded sales of 727 billion rupiah, a 135.4% increase from 309 billion rupiah in the same period of 2023.
The company also reported a net profit of 42.38 billion rupiah in the first nine months of 2024, recovering from a loss of 16.5 billion rupiah in the same period of 2023.
