[Salon] Indonesian and Malaysian brands rise with Israeli consumer boycott of Israel

https://harici.com.tr/endonezya-ve-malezya-markalari-israil-tuketici-boykotu-ile-yukselise-gecti/

ASIA

Indonesian and Malaysian brands rise with Israeli consumer boycott of Israel.

Published on 03.01.2025
Harici.com.tr
Indonesian and Malaysian brands rise with Israeli consumer boycott

Indonesian new fast-food chain Almaz Fried Chicken opened 37 outlets in several cities on the Island of Sumatra, most of them in Greater Jakarta, in Indonesia, after a boycott of Israeli-related products.

Speaking at the beginning of December, Chief Executive Okta Wirawan said that they want to open 10 more by the end of the year, as the chain expects to reach the head-to-head point seven months after opening its first point of sale in June, attracting consumers who previously eat at Western chains such as KFC.

“Our customers feel that they are contributing not only to quality food, but also to a noble goal by purchasing Almaz products,” Wirawan told Nikei Asia, saying that the company has committed to allocating 5% of its profits to charities, including aid to Palestinians.

Boycott campaign

More than a year have passed since the outbreak of the Israeli-Palestinian conflict, customers in countries where the majority population is Muslim, such as Indonesia and Malaysia, continue to boycott Western brands that have or are thought to be connected to Israel. While food chains and consumer goods were specifically targeted, the local operations of big names such as KFC, McDonald's, Pizza Hut, Starbucks and Unilever were encravated.

On the other hand, the boycott caused the birth or growth of local businesses producing similar products in both Southeast Asian countries. This trend also has the potential to change the face of consumer-facing sectors in the two countries by supporting consumer goods and cosmetics manufacturers.

While many consumers in Malaysia boycotted Starbucks, they turned to local caffeine suppliers ZUS Coffee, Gigi Coffee and others. Independent cafes enjoy a similar wind.

“We've seen more customers coming to independent cafes like ours since the boycott,” says a barista from Artisan Roast Coffee in Kuala Lumpur, adding that young Malaysians have caught the wave of drinking coffee: “Sales have increased between about 10% and 20%.”

Fore Coffee in Indonesia is moving fast to take advantage of this opportunity. Two months after the start of the Israeli-Hamas conflict, Fore received a halal certificate to support its rapidly expanding operations.

“Indonesia is the largest Muslim country, so having this halal certificate affects our sales very significantly,” Fore's co-founder and Chief Executive Officer Vico Lomar told Nikkei in December. "Perhaps the boycott itself helps the local people love the local products," he added.

According to a consumer survey published by GlobalData in July, almost half of the participants worldwide participated in the boycott against some brands due to recent wars and conflicts. However, in Malaysia and Indonesia, this rate is much higher, about 70%.

Supporters of Palestine

Affected by the boycott against Israel, the share prices of companies traded on the Indonesian and Malaysian stock markets have fallen significantly since October 2023.

Indonesia and Malaysia have long been loyal supporters of Palestine. Both have no diplomatic relations with Israel. Indonesian President Prabowo Subianto recently condemned the double standard practice of Western countries on human rights when it comes to Palestine, at a meeting of various countries, mostly Muslims in Egypt. “Human rights are not for Muslim peoples. This is the truth. This is very sad" he said.

Malaysian Prime Minister Anwar Ibrahim intensified his criticism of the US for his support for Israel, rejected pressure to identify Hamas as a terrorist group and banned Israeli ships from entering Malaysian ports.