SUPPLY IN JAKARTA
The total Jakarta retail supply was recorded at 4,015,100 sqm
(+0.8% YoY), comprising 2,900,100 sqm (or 72.2%) within
retail centres for lease and 1,115,100 sqm (or 27.8%) in
strata title spaces as of 31 December 2014.
Retail space supply of Jakarta’s CBD and South Jakarta stood
relatively on the same level and contributed the majority
portion of supply (21.8% of the total supply) at 877,100 sqm
and 875,200 sqm, respectively, followed by North Jakarta with
795,300 sqm (19.8%), and West Jakarta with 696,500 sqm
(17.3%). Central and East Jakarta made up the remainder with
448,400 sqm (11.2%) and 322,600 sqm (8.0%) respectively.
During 2015, there will only be 217,000 sqm of additional
supply coming in to the Jakarta market. Two of the notable
NEW DEVELOPMENTS ARE THE TWO SHOPPING CENTRES CALLED 0)+
0ANTAI )NDAH +APUK -ALL IN THE .ORTH *AKARTA AND 3HOPPING
Mall at Pancoran in South Jakarta. Should these proposed
new retail malls meet their completion schedule, the total
supply within Jakarta will reach 4,232,100 sqm by the end
of the year.
The near term retail space supply in Jakarta will likely be
limited as the shopping centre moratorium continues.
4HIS WILL CREATE A FAVOURABLE MARKET CONDITION FOR EXISTING
shopping mall owners as retail space in Jakarta will be
KEENLY SOUGHT AFTER IN THE NEXT FEW YEARS
DEMAND
International retailers are still very active in the Indonesian
market and are competing with local retailers for the
LIMITED RETAIL SPACE SUPPLY 5NIQLO IS EXPANDING ITS BUSINESS
IN *AKARTA WITH THE OPENING OF ITS SIXTH STORE IN 'RAND
Indonesia. Thailand’s Department store, Central also opened
ITS lRST STORE IN 'RAND )NDONESIA /NE OF THE NEW READY
TO WEAR 53 BRANDS n !MERICAN %AGLE ALSO OPENED ITS lRST
STORE IN )NDONESIA AT #ENTRAL 0ARK )+%!S OPENING OF ITS lRST
35,000 sqm standalone store at Alam Sutera also shows
the international retailers’ interests growing at the Greater
Jakarta area.
The average occupancy rate of Jakarta retail market
increased by 1.8% YoY and reached 85.3%, leaving
APPROXIMATELY
SQM OF VACANT RETAIL SPACE AS OF
31 December 2014.
Retail malls’ occupancy in Jakarta reached its highest since
2005 as it hit 91.4% by the end of 2014, while occupancy
rate of the strata title spaces increased slightly to 69.1%,
considerably below that of the retail malls.
As such, the average occupancy rate of Jakarta retail market
increased to 85.2%.
OUTLOOK
The outlook for quality retail spaces looks promising in
THE NEXT
MONTHS AS BOTH LOCAL AND FOREIGN RETAIL PLAYERS
continue to remain active. At the same time, higher
disposable income and large and growing consumer class
coupled with emerging lifestyle trend of shopping mall are
EXPECTED TO FUEL THE DEMAND FOR RETAIL SPACE
2012
2011
2013
0.0%
6.0%
4.0%
2.0%
8.0%
INDONESIA GDP GROWTH VS WORLD GDP GROWTH (Y-O-Y %)
Sources: Statistics Indonesia (BPS), World Bank
"03 REBASED ITS REAL '$0 SERIES TO
FROM PREVIOUSLY
19
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
2010
6.2%
6.2%
5.7%
6.5%
2.8%
2.4%
2.5%
3.1%
Indonesia GDP Growth
World GDP Growth
5.0%
2.6%
