BreadTalk Group has signed a joint venture agreement with Pura Indah Berkat (PIB) to establish PT BTG – Pura Indah Berkat Venture (BTG-PIB), an entity which operates the Toast Box brand and chain of outlets in Indonesia.
This was done through BreadTalk Group’s wholly-owned subsidiary, BreadTalk International Pte Ltd (BTI) and will see BTI and PIB owning 70% and 30% of BTG-PIB respectively. The first Toast Box outlet is slated to open this year in central Jakarta. Currently, PIB manages a Toast Box outlet at Soekarno-Hatta International Airport Terminal 3.
The agreement allows the new entity to develop and operate the Toast Box brand, combining BreadTalk Group’s experience in managing and developing franchisee relationships, with PIB’s strong understanding of the consumers’ preferences in Indonesia.
The statement added that the investment is “not expected to have any material impact” on the earnings per share and net tangible assets of the company and the group for the financial year ending 31 December 2018.
In a statement, Tan Aik Peng, CEO of BreadTalk Group’s bakery division said Indonesia is a strategic and important market for the company. It also believes its Toast Box product offerings are highly relevant to consumers in Indonesia.
To bolster its Indonesia presence, Toast Box will be introducing new and localised products catered to local consumers. While launch plans has yet to be finalised, online and social media channels is a key focus for the company, a spokesperson explained.
Toast Box will also be looking at collaborating with strategic partners. It is currently in the midst of reviewing and shortlisting an agency for the brand launch and store opening in Indonesia.
“We are confident that with our insights and experience from operating Toast Box in Singapore and other regions, our consumers will be able to enjoy our quality Nanyang coffee, toast products and local delicacies in Indonesia,” Tan added.
“The Toast Box brand is well known around Asia for its authentic interpretation of Nanyang coffee and cuisine. We are very pleased to partner BreadTalk Group for its strategic expansion of Toast Box into Indonesia,” Handrio Arinto Budhi, CEO of PIB, added.
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