Bengawan Solo was founded in 1979 by Tjendri Anastasia, originally from Indonesia. Anastasia came to Singapore where she met her husband, Johnson Liew. After getting married, Anastasia's interest in Indonesian delicacies continued in the little home kitchen of her HDB flat. Gradually, word of the existence of her tasty goodies got around, and, before she knew it, orders for her cakes and kueh came rolling in. Her home-made specialties even made it onto the shelves of some supermarkets and emporiums, albeit produced without a food manufacturing licence.

When officials from the Ministry of Environment finally caught up with her and her unlicenced food production, she was warned and instructed to stop her home baking business. The incident turned out to be a blessing in disguise as it led to Anastasia's decision to set up the very first Bengawan Solo Cake Shop in Marine Terrace.