From Boycott to Recovery: Evaluating the Financial Impact of Political Consumerism on Starbucks in Indonesia

Abstract

Abstract - This study investigates the effects of the Boycott, Divestment, and Sanctions (BDS) movement on Starbucks Indonesia, operated by PT MAP Boga Adiperkasa Tbk (MAPB), and assesses whether the company’s financial performance improved following its removal from the BDS Indonesia boycott list in July 2024. Using quarterly financial data from Q1 2023 to Q1 2025, the research identifies a pronounced decline in revenue and profitability during the peak boycott period from Q4 2023 to Q2 2024. The data show that despite Starbucks’ public clarifications and humanitarian efforts, financial recovery was not immediate. Although Q1 2025 indicates modest signs of stabilization, the findings suggest that reputational harm from political consumerism can linger well beyond formal delisting. This case study contributes to the broader literature on the financial impact of consumer activism in Indonesia and provides insights for multinational companies managing reputational risk through local franchise operations.

Keywords - BDS movement, consumer boycott, Starbucks Indonesia, brand recovery, reputational risk