All it took was a phone call. In his own words, Edward Tirtanata was studying or “slacking off” at Northeastern University in Boston. Instead of flipping through his books on finance and accounting, he would spend hours playing the massively popular online game Dota 2, clicking mouse buttons and obliterating faceless foes.
“My mother was on the other end,” Edward, 35, recalls. She had chilling news.
His father’s business was going through financial difficulties, so the family might become bankrupt. He would have no money for school fees if that happened, and he
would have to drop out.
The mouse clicking stopped. “I turned my life around so I wouldn’t be a burden on my family,” says Edward. Whenever he wasn’t in class, he was either buried in books at the library or lifting weights at the gym. Graduating magna cum laude, the second highest academic distinction, after barely passing his first semester was a remarkable achievement. He also lost 20kg. “But I’ve put it all back on now!” he laughs boisterously.
Planting The Coffee Bean
It was a dramatic transformation, but anyone who grew up with Edward knew he was smart and capable. He just needed a catalyst. As a child, he was always more interested in business than books. He had a knack for sourcing soon-to-be popular items such as Pokémon cards and reselling them for a profit. “Back then, I even sold botting (third-party software that stores rapid keystrokes) services and made a healthy sum of pocket money since few friends knew how to do it.”
His burgeoning interest in coffee began as a teenager as well. While he remembers visiting cafés with his mother at a young age, he only began drinking coffee in his freshman year.
He took his first sip from a convenience store near his college. It was tasteless and terrible, but Edward soon became accustomed to drinking three cups of coffee every day as he learned more about coffee and the beans that made it possible.
Edward Tirtanata's Many Faces
Edward Tirtanata used to be a consultant. 
He started Kenangan Coffee in a small outpost in Jakarta, Indonesia. 
Now, Kenangan Coffee is in several countries and is worth a billion dollars.
He also experimented with beans from all around the world at home. As he travelled, he immersed himself in the coffee culture of the city he was visiting. It became an obsession.
Edward started Lewis & Carroll Tea in 2015 because he felt there were too many coffee houses in Indonesia. But he still thought about the bean often.
Then, a tiny splinter of a seed grew in his mind. “I realised that a wonderful cup of coffee in Indonesia was equal to about 35 percent of the average daily wage. That is hardly affordable to the person in the street.” Coffee houses charged that much because they offered comfortable seating, fast Wi-Fi connections, and lots of space.
So, he calculated that he could reduce operating costs by removing the frills and focusing on the core product—great coffee. He also intensified his experiments. “Back in 2017, my friends were afraid to meet up with me because I kept asking them to taste different coffee recipes. Most of them were terrible!” roars Edward with laughter.
Eventually, he distilled the recipes into one. In August 2017, together with his friend and co-founder James Prananto, he opened the first Kopi Kenangan (meaning “Memories Coffee” in Bahasa Indonesia), or Kenangan Coffee, at the Standard Chartered building in South Jakarta.
Although it was a small space measuring 12 sq m, business boomed. Edward’s brand fulfilled the desire of many to grab a cup of excellent coffee before heading to work in the mornings.
His next move mimicked Starbucks’ playbook. He opened the second outlet 500m away from the first to test a thesis: would opening a similar store nearby cannibalise sales from the original shop? The answer was a resounding no. Within six months, Edward and James opened 50 Kopi Kenangan outlets across Jakarta. Sales were brisk, with customers loving the fair prices—15,000 Rupiah (S$1.30) for an Americano—and great taste.
Six years later, the rocket ship that took off from a small outlet in Indonesia has now travelled to multiple countries, including Singapore, where three outlets have opened in rapid succession, thanks to investments by Sequioa Capital, Arrive, Jay-Z’s venture capital platform, and Serena Williams’ Serena Ventures.
Edward has a great story to tell about the last two. How many people in the world can say they almost turned down Jay-Z? “Sequoia Capital’s investment in us attracted a lot of attention, including Neil [Sirni],” explains Edward. Sirni co-founded Arrive with the American rapper and loved Kopi Kenangan’s journey and trajectory.
Sirni wanted to be part of the business, but Edward told him that this specific funding round was packed to the brim. “I told him I would make space for him if he invited more of his friends. I had no idea the friend he was inviting was Serena Williams!” A huge tennis fan, he was ecstatic and accepted their investments. Today, Kopi Kenangan is a unicorn after raising $96 million during its Series C funding in 2021.
Backed By Data
Contrarians looking at Kopi Kenangan’s incredible growth would probably predict its slowdown. With close to 1,000 stores in the region and many more planned soon, it’s a fair hedge that the road will get significantly bumpier.
But when you pry into Edward’s quick-thinking, analytical mind, you’d want a seat on the rocket ship, too. The entrepreneur is sharp and knowledgeable. Talking to him about the intricacies of coffee and the business of the bean is like getting a 60-minute masterclass from a seasoned professional. In addition to understanding cost of goods sold, logistics for the coffee supply chain, customer trends, footfall, and much more, he easily rattles off facts and figures.
All of his decisions are based on data. Before launching in Malaysia and Singapore, Edward conducted several months-long surveys to learn how the countries liked their coffee. “I believe that any CEO embarking on a global challenge using the strategy that worked in their home market will usually fail. We localise recipes for each country and tap on the knowledge of the locals before opening the first outlet.”
For instance, Singaporeans usually prefer less sweet concoctions with more caffeine, specifically two shots of espresso made from Arabica beans. So, according to Edward, Singapore’s Kopi Kenangan coffee is 40 percent less sweet than Indonesia’s.
During the pandemic, when people were stuck at home, Kopi Kenangan somehow grew in popularity. So, the team doubled down on technology and delivered the signature Kenangan Latte to Jakartans who craved its taste. Its extensive presence ensured the company always had a nearby outlet to fulfil customer orders.
During the first two years of operation before the pandemic, Edward says they created a heatmap to study consumer buying patterns. During Covid-19, that decision paid off in spades.
The key to selling coffee isn’t just taste and price, but convenience. If you’re over a kilometre away, no one will buy your coffee. Additionally, he doubled down on his people. A nominal salary of 1 rupiah was paid to the executive team each month to prevent layoffs while the rest continued receiving their salaries. No one lost their jobs.
Growing The Future
While things have seemed smooth sailing so far, Edward admits there have been some missteps. One, in particular, has shaped the way he operates the business.
“We began selling bread with our coffee in Indonesia after our research showed that people enjoyed them together. At first, everything went well. Nevertheless, when we extended the initiative beyond Jakarta, we had several supply chain issues as I tried to control production. In the end, I worked with partners to supply the bread.” Identifying your mistakes and rectifying them quickly is the key to avoiding costly errors in the future. Edward now focuses on making great coffee and works with partners who know best about other products. It follows Jeff Bezos’ famous business adage: focus on what makes your beer taste better.
He’s also in tune with the world’s clarion call for sustainability. In typical Edward fashion, he’s diving into the data. To become more responsible in 2023, the company has hired an ESG (environmental, social, and corporate governance) consultant. The first step is always to establish a baseline.
“It’s not enough for me to declare that I want to be plastic-free without understanding the numbers,” he says.
However, he has some general goals. First, he wants to reduce company waste every year. Second, in Indonesia, every outlet is already using a sippy cup lid made of recycled plastic. In the long run, it would like to become a net zero organisation.
Besides expanding the Kenangan Academy to Singapore to teach the art and science of coffee, Edward also plans to go public, although he still has to open a lot of stores and sell a lot of coffee before he can consider it.
Considering the importance of coffee in Edward’s life, it’s ironic that he must take stock when I ask him about his sweetest coffee memories. “My daily life has always revolved around coffee, so it’s hard to pinpoint one specific memory. The freshest on my mind is my first son Emerson,” beams the new father. “When he was born in October, I was drinking our new Dutch chocolate series!”
Following a day of paternity leave, he plunged headlong back into his job, jetting to the different countries that Kopi Kenagan operates in to ensure everything was operating smoothly. “My wife is incredibly understanding. She knows there are no off days in this business,” he says, smiling.
The rocket ship needed its captain, so Edward returned to the helm. There is still much to be done.
Photography Mun Kong
Styling Chia Wei Choong
Hair and Grooming Keith Bryant Lee using Schwarzkopf Professional & Bobbi Brown
Photography Assistant RJ Teo
Styling Assistant Annalisa Espino
