China's Luckin Coffee plans to develop exclusive coconut supply hub in Indonesia

Chinese coffee giant Luckin Coffee has officially entered into a strategic collaboration with the Banggai Kepulauan Regency Government, marking a significant step in its global expansion. This partnership will establish the "Luckin Coffee Exclusive Coconut Island," ensuring a steady supply of premium-quality coconuts as a key ingredient for its products.

An agreement was signed recently at Swiss-Belinn Luwuk Banggai, attended by key regional government officials, including Banggai Kepulauan Regent Rusli Moidady, Deputy Regent Serfi Kambey, and chairman of the Regional House of Representatives Arkam Supu, along with other high-ranking officials.

Luckin Coffee continues to expand rapidly, reaching 22,340 outlets worldwide and serving over 330 million customers as of 2024. A key factor behind its success is its dedication to product quality and innovation, exemplified by its signature Coconut Milk Coffee, which has sold over 1.2 billion cups in just four years since its launch, according to a release.

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This partnership underscores Luckin Coffee's commitment to sourcing premium ingredients while ensuring authenticity in its products. The company aims not only to expand its supply chain but also to contribute positively to the local economy by promoting Banggai Kepulauan's natural resources on the international stage.

"The signing of this MoU between the regional government and Luckin Coffee is a strategic move that not only opens up investment opportunities but also strengthens Banggai Kepulauan's position on both national and international levels," Moidady stated.

He also hoped that Luckin Coffee's presence will create job opportunities for local communities, generate new business prospects, and showcase the region's economic and cultural potential.

Banggai is part of Sulawesi, Indonesia's fourth largest island. The agreement is expected to drive growth in other sectors, particularly tourism and the creative economy, which are key development priorities for the region.

Shan Li (pictured), senior director of Luckin Coffee, expressed delight in visiting Banggai Kepulauan and emphasised the company's commitment to fostering deeper collaboration. "I feel incredibly privileged to visit this hidden paradise—Banggai Kepulauan. As Luckin Coffee's senior director of the central supply chain, I'm here on behalf of our entire team to strengthen relationships and explore wider collaboration opportunities," he said.

The agreement comes at a pivotal moment, following Indonesia's accession to the BRICS group earlier this year. This development signals Indonesia's increasing role in global economic affairs, providing a favourable environment for international partnerships.

Li also expressed confidence that the company will continue to expand. "Maintaining high quality remains our top priority, and this partnership represents a significant step in upholding those standards," he said.

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