Starbucks Indonesia Shuts Down Dozens of Stores in Q1 Amid Ongoing Boycott

TEMPO.CO, Jakarta - The operator of the coffee chain Starbucks, PT Mitra Adiperkasa Tbk. (MAPI or MAP), stated that the company had closed 11 outlets due to decreased work and the influence of the boycott movement. Before the boycott movement due to the company's alleged involvement in the conflict in Israel, Starbucks used to open 70-80 outlets every year.

Corporate Secretary Eva Andrianie stated that the boycott movement compelled the company to limit the number of outlet openings to 10-15 stores per year. Last year, Starbucks also closed 11 outlets. "In the first quarter of this year, we also closed 11 outlets again due to the still felt impact of the boycott," she said in information disclosure at the Indonesia Stock Exchange, quoted on Friday, July 4, 2025.

Eva said that over the past year, coffee shops managed by the company faced significant challenges. This challenge, Eva said, was not due to operational issues, but rather false information linking Starbucks to the conflict in Israel.

Eva also denied Starbucks' involvement in the conflict. "We emphasize that Starbucks does not have stores, employees, or operational activities in Israel, and indeed has not been there since 2008," she said.

As a result of this situation, Eva stated that 7,500 employees, including their families and children, faced pressure simply for using the Starbucks logo. "We see students being asked to leave school just for bringing a Starbucks tumbler, and our stores have also become targets of attacks and unfair judgments," said Eva.

Eva said the company regrets the incident. Yet, she said, Starbucks has contributed to Indonesia by using Arabica coffee domestically and worldwide. "Through our business, we support more than 100,000 people, including farmers, suppliers, contractors, building owners, and of course, our employees," she said.

Nevertheless, Eva added, the current management is still working to restore the prevailing sentiment in society. Management has confirmed that Starbucks has officially been removed from the boycott list. "Since then, the sentiment has started to improve, but the recovery process is still ongoing," she said.

Despite facing these challenges, Eva said her company remains committed and consistent in contributing to Indonesia. The company will also continue to support local communities, develop the potential of Indonesian coffee, and provide job opportunities. "With the support of MAP as our parent entity, and cooperation from the media, we believe we can rebuild public trust and continue moving forward. Ultimately, the most important thing is the truth, and ensuring that the Indonesian society is protected from the negative impacts of false information," she said.

This year, MAP has also allocated a shopping capital of Rp2 trillion. However, this budget has not been fully utilized due to the poor performance of the F&B segment. "Our expansion to other countries is also very limited. But our budget this year remains Rp2 trillion," said Eva.

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