Korean food companies accelerate expansion in Indonesia

South Korean food companies seeking a breakthrough from sluggish domestic demand are rapidly expanding into Indonesia, the world’s fourth most populous country.

According to industry sources on Tuesday, Korean food companies and franchises, including those in chicken, instant noodles, and bakery segments, are beginning to enter the Indonesian market or are aggressively increasing their local store counts.

Fried chicken franchise BBQ, operated by Genesis BBQ Co., signed a master franchise agreement in September 2024 with PT Jakarta Heritage Rasa Harum, an affiliate of Indonesia’s Gunung Sewu Group.

This year, BBQ opened four stores in Jakarta and other locations, with plans to open four more in early next year.

BBQ has been expanding aggressively not only in the United States, one of its core overseas markets, but also across South America and Southeast Asia, with Indonesia seen as a strategic hub for regional growth.

“Indonesia is a strategic foothold for tapping the broader Southeast Asian market,” said a BBQ official. The company operates more than 700 stores in 57 countries.

(BHC)

Rival fried chicken chain BHC, operated by Dining Brands Group Co., has also launched its Indonesia push this year.

The company opened its first outlet this month at Neo Soho Mall in central Jakarta and is preparing to open a second store in the first half of next year.

With about 85 percent of Indonesian households relying on motorcycles, BHC is placing particular emphasis on delivery services through local platforms.

Ottogi Corp., Korea’s second-largest instant noodle maker, obtained halal certification for Jin Ramen from Indonesia’s Ulama Council in December 2024 and completed import approval in August.

Sales began last month at major supermarkets and hypermarkets. To attract younger consumers with strong interest in Korean pop culture, Ottogi is also running a global marketing campaign featuring BTS member Jin.

Nongshim Co. is tailoring its Shin Ramyun lineup to local preferences, focusing on bolder spices and heat. New variants launched last month, including Shin Ramyun Spicy Chicken and the cream- and cheese-based Shin Ramyun Toomba and Shin Ramyun Stir-Fry Cheese, have gained strong traction.

Samyang Foods Inc.’s Buldak noodle, known for its intense spiciness, has already gained a strong following across Southeast Asia.

Indonesia, which ranks second globally in per-capita instant noodle consumption with 14.5 billion servings, has seen continued growth in social media video challenges centered on the product, particularly among younger consumers.

Bakery franchises are also accelerating their expansion in Indonesia, steadily increasing store counts at high-traffic mixed-use malls in major cities.

(SPC Group)

SPC Group’s Paris Baguette operates 21 stores in Indonesia as of December, while CJ Foodville Co.’s Tous les Jours runs more than 70 outlets and is preparing additional openings.

Paris Baguette plans to further expand its presence in Indonesia and other Southeast Asian markets next year, a company official said.

Coffee chains are also eyeing Indonesia.

Ediya has signed master franchise agreements this year to enter Laos, Cambodia and Myanmar and is considering Indonesia as a future market.

Indonesia’s population has grown to 286 million this year from 262 million in 2015, an increase of 24 million over the past decade.

According to market tracker Verified Market Research, the country’s food market, including dining and franchise businesses, is projected to reach 167 trillion won ($116.1 billion) in 2030, up from 73 trillion won in 2020 and 90 trillion won in 2025.