Pelita Air to start flying between Jakarta, Singapore from Aug 18
This marks the first venture into the international market for Pelita, which has been serving domestic routes in Indonesia, its home base.
The Business Times earlier reported that the airline will likely be taking over Jetstar Asia's check-in premises at Terminal 4, after the exit of the Qantas-owned budget carrier, and will use Sats as its ground handler and inflight caterer.
The passage between Jakarta's Soekarno-Hatta International Airport and Singapore's Changi Airport was the eighth-busiest international route in the world in 2024, according to data from flight analytics platform OAG. Passenger traffic on the route grew 4 per cent compared to 2023, though it was still 26 per cent down from 2019, before the Covid pandemic.
The daily flight from Jakarta will leave at 7.10am local time and land in Singapore at 10am, according to Pelita's website. The return flight will leave Singapore at 11am and reach Jakarta at 11.50am local time.
Pelita Air owns 13 Airbus A320 aircraft, alongside three ATR 72s and one ATR 42. Delays in delivery of six A320s have resulted in the carrier expecting only four of those planes this year, said a February report by Jakarta's Bisnis.
The airline was initially formed in 1970 by Indonesian oil and natural gas giant Pertamina. It provided air links to the state-owned company's various oil and gas drilling locations across Indonesia. It then became a charter operator, but relaunched scheduled flights in 2022 after 17-year hiatus.
Today, it serves 17 domestic destinations including Jakarta, Kendari and Sorong, indicated its website.
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Business Times
8 minutes ago
- Business Times
‘Who's going to buy a S$9 croissant?': Singapore's artisanal bakeries crumble under cost pressures, softening demand
[SINGAPORE] The pie is shrinking for artisanal bakeries in Singapore as they battle a triple threat: rising ingredient and rental costs, labour shortages, and weakening demand for baked goods. With hopes of a post-pandemic dining revival fading, the pressure on operators is reaching a boiling point, forcing many to lay their cards on the table by pivoting offerings, consolidating, or closing outlets altogether. Among them is Keong Saik Bakery, a home-grown brand known for its nostalgic yet modernised local bakes. 'We went from profitable to not profitable. The last two years have been very challenging for us,' says its founder and chief executive Tan Yuzhong. 'A lot of people thought business would be good after Covid, including us, so we expanded,' he adds. 'But it turned out the opposite… We definitely suffered because we expanded too fast and didn't expect the headwinds to hit this much.' Keong Saik Bakery opened its second outlet at Chip Bee Gardens in 2022. Foot traffic at the store – located in the Holland Village area – was 'decent' at the time, Tan recalls. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up But just a year later, as borders reopened and outbound travel increased, visitorship fell by 10 per cent. The launch of One Holland Village later in 2023 further diverted crowds, causing footfall to decline another 25 per cent. Tan adds that a stronger Singapore dollar in 2024 prompted further outbound spending, which likely contributed to an additional 20 per cent dip. The Chip Bee outlet is now Keong Saik Bakery's worst-performing store. It also operates two other outlets in Bendemeer and Jewel Changi Airport. 'From 2022, it was just down, down and down,' says Tan. 'There was no recovery, and it is very challenging for us at Chip Bee as there's no natural traffic to the space,' he adds, pointing out that, in total, sales at the outlet dropped 50 per cent from 2022 to end-2024, with takings in some months insufficient to cover expenses. At its peak, Keong Saik Bakery produced around 600 pastries daily across its three outlets. Today, output has halved. 'Margins for bakeries are very, very low,' says Tan. 'If you don't have the volume, it's very hard to survive, and you can't price bakes too high. Who's going to buy a S$9 croissant?' Across the island, similar stories are playing out. Data from the Department of Statistics shows that food and alcohol sales fell 4.5 per cent in May 2025 from a year earlier. As demand for baked goods softens, bakeries are seeing slower sales, with some throwing in the towel. L'eclair Patisserie, known for its artisanal French-style eclairs, experienced thinning traffic and falling sales at its Jewel Changi boutique store after opening in 2019. The outlet closed earlier this year. 'We noticed a slump after the half-year mark and footfall wasn't as great as what was estimated,' says founder Michelle Looi. When it was still operating, the store sometimes saw as few as 10 to 15 transactions a day. 'Jewel is more a destination spot – people come to take photos and leave,' Looi observes. 'At best, they'll dine at one outlet, so despite the crowds, conversion to sales remains low.' L'eclair Patisserie's Jewel Changi Airport boutique store sometimes saw as few as 10 to 15 transactions a day. Founder Michelle Looi cites dwindling footfall and high operational costs as reasons for its closure this year. PHOTO: L'ECLAIR PATISSERIE Since the Jewel store's closure, L'eclair's operations have continued at its other outlet in Singapore Shopping Centre, as well as online. Looi says the business needs about S$100,000 monthly revenue to break even – a steep target given tepid sales and high overheads. Even now, though, it remains in the red, with monthly revenue down 10 to 20 per cent. Online sales, which represent over half of the bakery's monthly revenue, have fallen 35 to 50 per cent over the last two years. 'It's just been a whole year of bleeding,' says Looi. 'We took out a working capital loan earlier this year, and we are just trying to survive.' Other casualties of the slump include Madu Bakery, which started as a home-based business in 2021 and shuttered its physical store in June last year after just two years. Tigerlily Patisserie, by former Les Amis chef Maxine Ngooi, closed last April after three years in Joo Chiat. Even more-established home-grown brands are feeling the heat. Cheryl Koh, founder of Les Amis spinoff Tarte, says business in the first half of 2025 has been slow, aside from a few bright spots during festive periods and major events. Tiong Bahru Bakery, meanwhile, recently shuttered its Funan Mall and Scotts Square outlets. The chain now operates 20 stores, having expanded in the past two years into heartland malls such as Jem and Tampines 1, as well as The Centrepoint in Orchard. Though the Funan outlet had loyal customers, business dynamics have changed since 2020, says Tiong Bahru Bakery's general manager Matthew McLauchlan. 'We had come to this decision after reviewing priorities and digesting observations on the current food and beverage (F&B) landscape.' International heavyweights, too, face challenges. French patissier Pierre Herme, meanwhile, told The Business Times in July that he is aware of global economic shifts, changing consumer habits, and rising competition in the high-end segment, but he remains undeterred. Pierre Herme Paris will open its largest flagship in the world on Aug 1 at the Weave, Resorts World Sentosa's new dining and lifestyle enclave. Pierre Herme Paris will open its largest flagship in the world on Aug 1 at the Weave in Resorts World Sentosa, even as patissier Pierre Herme acknowledges the challenges facing the F&B industry. PHOTO: ST Cedric Grolet's eponymous patisserie-cafe in Singapore opened in 2023 with long queues at Como Orchard. The initial hype has since tapered off. 'Since our opening nearly two years ago, we have actually maintained a steady and healthy performance with the daily footfall and revenue,' a Como spokesperson tells BT. 'While the initial buzz has naturally evolved, we have maintained a healthy and consistent volume of business from both walk-ins and online orders.' The cost crunch At the heart of the crisis is a rising cost structure, but falling revenue. 'Even with a healthy footfall, margins in F&B are always tight,' Tiong Bahru Bakery's McLauchlan points out. Operating expenditure in Singapore's F&B sector hit a record S$12.3 billion in 2023, up 8.8 per cent from 2022 and 37.3 per cent since 2020, Knight Frank Singapore reported on Jul 16. Operating revenue was slightly lower at S$12.2 billion. ' 'When I started the business (10 years ago), butter cost S$8 to S$10 per kg; now it's up to S$25. Chocolate was S$12 to S$15 per kg; now it's S$30 to S$50 due to logistics disruptions and weather – things consumers don't see.' ' — Michelle Looi, founder, L'eclair Patisserie L'eclair's Looi notes that ingredients in particular have become more expensive. 'When I started the business (10 years ago), butter cost S$8 to S$10 per kg; now it's up to S$25. Chocolate was S$12 to S$15 per kg; now it's S$30 to S$50 due to logistics disruptions and weather – things consumers don't see.' Manpower costs and availability add to woes. Ervin Yeo, CapitaLand's commercial management chief executive and group chief strategy officer, noted in a Jun 9 LinkedIn post that bakeries 'typically have higher manpower costs relative to ingredients because the magic is in the skilled baker turning flour and eggs into a S$12.50 tiramisu millecrepe'. In Singapore, F&B businesses have a foreign worker quota of 35 per cent of their total workforce. 'The challenge then is that the local pool is shrinking,' wrote Yeo. With birth rates going down, the number of Singaporeans willing and able to work in the service sector will continue to dwindle, especially as older staff retire. 'The blanket policy does not work,' says Keong Saik Bakery's Tan. 'Unfortunately, the fact of the matter is, not many Singaporeans are clamouring for F&B jobs and most of them only work it part-time.' The Chip Bee outlet, he adds, had no full-time employee in April and May. It currently runs weekday shifts with just two to three staff. Rent's a crust too high Rents have also become a heavy burden. Flor Patisserie, which serves Japanese-inspired French cakes, closed its Siglap Drive outlet on Jul 13, after a 57 per cent rent hike to S$8,500 per month, from S$5,400 previously. 'We have been around for 15 years, so we have quite a customer base. Even though the market is slow, we could sustain operations at Siglap,' says Flor's founder Heidi Tan. 'Really, the nail in the coffin is (the) rent hike… There's just no way we can continue with such an increase.' Flor Patisserie closed its final outlet at Siglap Drive on Jul 13, after rents rose by 57 per cent to S$8,500 per month. PHOTO: FLOR PATISSERIE Flor had already shut its Duxton and East Coast outlets in 2024, citing dwindling footfall and high rents. Monthly rents were about S$9,000 for a 1,200 square foot (sq ft) space in Duxton, and S$8,500 for a 2,200 sq ft unit in East Coast. Footfall and order sizes fell about 50 per cent post-pandemic, as office crowds stayed home and travel resumed. 'Cakes are not essential goods. It's a niche market, and we don't serve the masses,' says Tan. 'The sales didn't justify the high rents in Duxton and East Coast.' Rents have been rising across the board – not just for shophouses, but for mall spaces as well. Prime monthly rent for the Orchard area is now back to pre-pandemic levels; it was S$35.77 per sq ft (psf) in 2019 and S$35.83 psf in 2024, Cushman & Wakefield data shows. In suburban areas, prime monthly rent rose to S$32.90 psf last year, from S$31.76 psf in 2019. Rents of retail space increased by 0.9 per cent in Q2 2025 , reversing from the 0.5 per cent decrease in the previous quarter, latest data from the Urban Redevelopment Authority showed. L'eclair paid S$40 to S$50 psf for a ground-floor space in Jewel that was smaller than 300 sq ft. Looi says that on lease renewal, the mall operator – a joint venture between Changi Airport Group and CapitaLand – requested renovations and a 30 per cent rent hike. Amid all this, competition is getting stiffer as more home-based F&B businesses, including bakeries and cafes, are added to the mix. While there is no official data, there are reportedly over 150 listings of such operations. Keong Saik's Tan notes that the playing field may not be level, as home-based businesses are not subject to the same compliance costs, such as licensing and renovation fees, which can run into the thousands. ' 'People don't usually associate Keong Saik Bakery with lunches, but market shifts left us no choice.' ' — Tan Yuzhong, founder and chief executive, Keong Saik Bakery Baking up new strategies Faced with thinning margins, some bakeries are exploring new strategies to stay afloat. Keong Saik Bakery, for instance, introduced lunch items such as rendang chicken stew and Nonya curry chicken this year. It also rolled out a new range of eclair-shaped croissants called the Clairssant Collection. Keong Saik Bakery has rolled out a new range of pastries, as well as lunch items; these have helped boost the bakery's top line. PHOTO: KEONG SAIK BAKERY 'People don't usually associate Keong Saik Bakery with lunches, but market shifts left us no choice,' says Tan. The new offerings helped boost sales by 20 per cent, though the business remains in the red. 'The goal for this year is to at least achieve parity, and that will be a win for me,' says Tan. L'eclair has also diversified into pasta, croissants and sandwiches to appeal to different tastes. Looi plans to partner more with other brands for pop-up events, noting that the exclusive nature of such experiences tends to attract greater attention and engagement. Flor's Tan, meanwhile, has exited the F&B industry. 'The Siglap outlet is my only kitchen, so when that closes, there's no cakes. It's a full closure.' She now runs baking tours, bringing Singaporeans to Japan to learn from professional chefs. Some bakeries are also broadening their reach through increased business-to-business sales. CakeInspiration, a decade-old home-grown bakery specialising in custom cakes, pivoted from consumer sales – which dropped to near zero during Covid – to brands and corporate clients. Corporate orders now form half of CakeInspiration's revenue, providing steadier though slimmer margins, says chief executive Chan Kai Yang. They handle three to four corporate orders monthly, such as 1,000 to 2,000 cupcakes retailing at S$5 to S$8 each, depending on design and ingredients. Corporate orders provide steadier though slimmer margins for CakeInspiration. PHOTO: CAKEINSPIRATION Still, diversification plans may only go so far, unless structural issues are addressed. Lee Siew Ling, JLL Singapore's executive director of retail, has observed strategic partnerships where bakeries team up with complementary retailers or food operators to share operational costs. She cites as examples Bynd Artisan, which shares a space with Patisserie Woo at Ion Orchard, and coffee chain Alchemist, which shares its space in Funan Mall with Arcade Clothing. Guy Llewellyn, assistant professor at EHL Hospitality Business School's Singapore campus, says such co-sharing arrangements are one way to manage costs. 'This helps small F&B businesses mitigate rental risks… You're kind of hedging your bets,' he adds. Location matters Others may find more resilience in strategically located storefronts. Lee says bakeries need a strategic balance between visibility and manageable rent. Bakeries in prime high-footfall locations, such as MRT stations or street-facing units, can benefit from both destination traffic drawn to their specific offerings and the natural footfall generated by surrounding complementary uses, she notes. Tarte's Koh contrasts her Shaw Centre and Raffles City outlets, noting that the latter, which opened in 2020, attracts more walk-ins and natural footfall; Shaw Centre sees a more measured crowd, mainly customers already familiar with the brand. On average, Tarte fulfils between 300 and 400 orders daily, with weekends seeing higher volumes. Takeaways and deliveries make up about 70 per cent of sales, while dine-ins account for the remaining 30 per cent. 'Between the two outlets, Shaw Centre contributes more significantly to our overall sales, especially through dine-in and online channels,' says Koh, adding that the differing dynamics of the two locations complement each other and have helped with business. Joan Chen, CBRE's head of retail, says that success hinges on 'clearly defining the bakery's concept and matching it with its ideal consumer profile and consumption patterns'. Local or Asian-style bakeries are typically volume-driven and work best in high-traffic environments with a mass-market appeal, she adds. Conversely, European-style artisanal bakeries with premium pricing do better in shophouse enclaves that complement the ambience and encourage dining in. 'While foot traffic is low, store traffic once built through word-of-mouth recommendations… (and) memorable customer experiences will ensure regular visits.' JLL's Lee also notes that successful bakeries adopt hybrid models: central production kitchens supplying multiple smaller retail outlets, gaining production economies of scale and minimising rental frontage. ' What lies ahead is whether landlords are prepared to share their tenant's plate of cost challenges and take a cut in their rent revenue to support a tenant… and contribute to a healthy business cost model. ' — Joan Chen, head of retail, CBRE On the policy front, Prof Llewellyn suggests taxing unrented commercial units to motivate landlords to lease instead of waiting for 'perfect tenants'. 'Rental costs are staggeringly high and unfortunately, spending has remained flat. There's just less money going around and costs continue to rise,' he says. 'If nothing changes, the closures are going to keep happening.' CBRE's Chen, meanwhile, says improving small F&B survival needs flexible leasing, such as shorter leases and turnover rent. She also calls for inclusive licensing policies for temporary formats and opening underused public spaces for pop-ups. 'What lies ahead is whether landlords are prepared to share their tenant's plate of cost challenges and take a cut in their rent revenue to support a tenant, whether it is to trade off the brand name or to support a tenant's business initiatives and contribute to a healthy business cost model.'
Straits Times
an hour ago
- Straits Times
Indonesian President Prabowo pardons political opponents
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Indonesian President Prabowo Subianto speaks to members of the media after his arrival at the Halim Perdanakusuma military airbase, following a trade deal with the United States after negotiations, which resulted in a reduction of proposed U.S. tariff rates on the country's exports to 19% from 32%, in Jakarta, Indonesia July 16, 2025. REUTERS/Ajeng Dinar Ulfiana/File Photo JAKARTA - Indonesia's President Prabowo Subianto pardoned two political rivals, a former trade minister and a senior politician from an opposition party a few weeks after both were sentenced to jail, officials said. Prabowo granted amnesty to Hasto Kristiyanto, the secretary general of parliament's largest party, the Indonesian Democratic Party of Struggle (PDIP), Law Minister Supratman Andi Agtas said late on Thursday in a news conference broadcast by local media, after meeting the House's deputy speaker. Hasto was sentenced to 3-1/2 years in prison last week for bribing an election official but the amnesty revokes his sentence though his conviction will still stand. The president also granted an abolition for Thomas Trikasih Lembong, a trade minister under President Joko Widodo who was sentenced to 3-1/2 years in prison for improperly granting sugar import permits, Supratman said in the news conference. The abolition means, Lembong, who was the campaign manager of Prabowo's rival candidate in last year's presidential election, is acquitted of the charges and his sentence. Prabowo granted the clemencies as the government sees the need to unite all political elements and as part of Indonesia's independence celebrations in August, said Supratman. "We need to build this nation together, with all the political elements ... And both have contributed to the republic," Supratman said. It is common for the Indonesian president to give pardons ahead of the national independence day on August 17. The amnesty for Hasto was among the pardons given to more than 1,100 other people, Supratman added. Lawyers for Hasto and Lembong did not immediately respond for Reuters' request for comments. Under Indonesian law, the president has the authority to give amnesty and abolition but it requires approval from the parliament, said Bivitri Susanti from Indonesia's Jentera School of Law. Still, she said the amnesty given to Hasto was rather "political" to gain support from the largest opposition party in the parliament while for Lembong, the government is responding to growing protests from the public over his sentence. Other observers were concerned the pardons undercut efforts by the judiciary to deal with corruption in a country where concerns about graft and government misconduct are high. "It shows that the government could intervene in law enforcement, make it as a political bargain," said Muhammad Isnur from rights group Indonesian Legal Aid Foundation. REUTERS
Business Times
an hour ago
- Business Times
Indonesia's exports rise again in June as US-bound shipments jump
[JAKARTA] Indonesia's exports rose in June as exporters sought to beat the US tariff deadline and shipments of palm oil and gold jewellery increased, while inflation accelerated in July, official data showed on Friday. June shipments from South-east Asia's biggest economy jumped 11.29 per cent on a yearly basis to US$23.44 billion, higher than the 10.41 per cent forecast by economists polled by Reuters. Exports rose 9.68 per cent in May. Excluding oil and gas, June shipments to the US rose 33.5 per cent on a yearly basis. Top Indonesian products sold to US buyers included electrical machinery, clothing, footwear, palm oil, rubber and seafood. Shipments of palm oil from the world's biggest producer surged 15.1 per cent in June, while gold and jewellery exports more than doubled from the same month in 2024. Imports in June rose 4.28 per cent on a yearly basis to US$19.33 billion, below the poll's forecast of 6.5 per cent. The result was a bigger-than-expected trade surplus of US$4.11 billion in June, above the poll's expectation of US$3.45 billion, but down slightly from May's US$4.30 billion. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Indonesian exporters in recent months have brought forward shipments to the United States ahead of President Donald Trump's Aug 1 deadline for tariff negotiations. Washington set Indonesia's import tariff at 19 per cent under a deal agreed in July, from threatening a 32 per cent levy earlier, after Jakarta agreed to eliminate most tariffs affecting US industrial and agricultural products and to buy more American goods. Trump has issued an executive order saying the new tariff rates will be implemented in seven days. Indonesia's trade surplus may be squeezed as the tariffs take effect, with imports likely to rise and exports affected by lower prices of its top commodities, such as coal, Bank Danamon economist Hosianna Situmorang said. Meanwhile, Indonesia's July annual inflation accelerated to 2.37 per cent on an annual basis, more than the 2.25 per cent expected by analysts, reflecting higher prices of foods such as shallots, rice, and tomatoes, as well as rising utility and education costs. Annual core inflation, which strips out government-controlled and volatile food prices, was 2.32 per cent in July, compared with an analyst estimate of 2.37 per cent. Both rates remained within the central bank's target range of 1.5 per cent to 3.5 per cent. Bank Indonesia has cut interest rates four times since September, citing low inflation and a need to support economic growth. Josua Pardede, an economist at Bank Permata, said despite the impact of the tariffs on Indonesia's external position, the current account deficit was likely to remain manageable. 'This underpins our call for up to 50 bps BI-rate cuts in 2025,' Pardede said. REUTERS
