Almaz Fried Chicken, a new Indonesian fast-food chain, has opened 37 outlets across Indonesia in just a few months. Most of these are located in Greater Jakarta, with several others on Sumatra Island. This rapid expansion follows a widespread boycott of Israeli-related products.
In early December, Chief Executive Okta Wirawan stated that the chain expects to break even seven months after opening its first outlet in June. The company plans to open 10 more outlets by the end of the year, targeting consumers who previously frequented Western chains like KFC.
“Our customers feel that by buying Almaz products, they are not only getting quality food but also contributing to a noble cause,” Wirawan told Nikkei Asia. He added that the company is committed to donating 5% of its profits to charity, including aid to Palestinians.
More than a year after the outbreak of the Israeli-Palestinian conflict, customers in Muslim-majority countries such as Indonesia and Malaysia continue to boycott Western brands with links—or perceived links—to Israel. Food chains and consumer goods have been particularly affected, with local operations of major brands like KFC, McDonald’s, Pizza Hut, Starbucks, and Unilever taking a hit.
Conversely, the boycott has spurred the growth of local businesses producing similar products in both Southeast Asian countries. This trend has also benefited consumer goods and cosmetics manufacturers, potentially reshaping the consumer-facing sectors in Indonesia and Malaysia.
In Malaysia, many consumers have turned away from Starbucks and are now patronizing local caffeine suppliers like ZUS Coffee and Gigi Coffee. Independent cafes are also experiencing a surge in popularity.
“Since the boycott, we have seen more customers coming to independent cafes like ours,” said a barista at Artisan Roast Coffee in Kuala Lumpur. He noted that young Malaysians are embracing the coffee-drinking trend, with sales increasing by about 10% to 20%.
In Indonesia, Fore Coffee is quickly capitalizing on this opportunity. Two months after the Israel-Hamas conflict began, Fore obtained halal certification to support its rapidly expanding operations.
“Indonesia is the largest Muslim country, so having this halal certification impacts our sales quite significantly,” Fore co-founder and CEO Vico Lomar told Nikkei Asia in December. “Maybe the boycott itself is helping local people to like local products,” he added.
According to a consumer survey published by GlobalData in July, nearly half of respondents worldwide have joined boycotts against certain brands due to recent wars and conflicts. In Malaysia and Indonesia, however, the figure is much higher, at around 70%.
The share prices of Indonesian and Malaysian listed companies affected by the boycott of Israel have fallen significantly since October 2023.
Indonesia and Malaysia have long been staunch supporters of Palestine. Neither country has diplomatic relations with Israel. At a recent meeting of several Muslim-majority countries in Egypt, Indonesian President Prabowo Subianto condemned the double standards of Western countries on human rights concerning Palestine. “Human rights are not for Muslim peoples. This is the reality. This is very sad,” he said.
Malaysian Prime Minister Anwar Ibrahim has intensified his criticism of the United States for its support of Israel. He has rejected pressure to recognize Hamas as a terrorist group and has banned Israeli ships from entering Malaysian ports.
