Indonesia GDP Growth VS World GDP Growth (Y-O-Y %)
Sources: Statistics Indonesia (BPS),
World Bank
*
BPS rebased its real GDP series
to 2010, from 2000 previously.
Indonesia GDP Growth
World GDP Growth
6.5%
6.2%
5.7%
5.0%
4.8%
2.4%
2.4%
2.5%
2.6%
3.1%
MANAGER’S REPORT
Market Review
2015
2014
2013
2012
2011
8
7
6
5
4
3
2
1
0
to BMI Research, the increase in
household income at 10.6% annual
growth is projected to boost household
spending to 11.9% annually from 2016
to 2019.
Earlier this year, Singapore’s sovereign
wealth fund, GIC committed to invest
S$520M in Trans Retail, which operates
supermarkets under the Carrefour
and TRANSmart brands in Indonesia.
GIC said the investment reflects its
confidence in Indonesia’s long-term
growth potential.
The average rental rates in Jakarta
increased by 2.6% YoY in 2015. As of
December 2015, the average base
rental for specialty shop units on the
ground floor within premium locations
was IDR691,400 per sqm per month,
an increase of 1.9% YoY. The average
service charge increased by 6.1% from
previous year.
SUPPLY IN JAKARTA
The total cumulative supply of retail
space in Jakarta was recorded at
4,002,200 sqm, where 2,887,100 sqm
(72.1%) are within retail centers for
lease and 1,115,100 sqm (27.9%)
are in strata-title retail centers as at
31 December 2015.
OneBelparkwas the only newshopping
centre completed in Jakarta in 2015
adding 23,650 sqmof new retail space.
Two shopping malls, Shopping Mall at
Pancoran and PIK (Pantai Indah Kapuk)
Mall, which were projected to be
completed and opened in 2015 have
rescheduled their openings until 2016.
In 2016, a further 303,300 sqm of
retail space are expected to enter
the market. Almost all of these future
supplies are retail centers for lease.
Two of the notable new shopping
centres are Lippo Mall Puri in West
Jakarta (77,700 sqm) and PIK Mall in
North Jakarta (34,000 sqm). Should
these proposed new centers meet
their completion schedules, the
total supply within Jakarta will reach
4,305,500 sqm by the end of 2016.
The near term retail space supply
in Jakarta will likely be limited as
the shopping centre moratorium
continues. This 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 supply. Uniqlo,
Forever 21, Mango, and Stradivarius
expanded their stores in South and
West Jakarta. Zara Home opened its
second store in Pondok Indah Mall.
Meanwhile, New York’s high fashion
brand, Coach, opened its first flagship
store in Grand Indonesia.
The average occupancy rate of Jakarta’s
retail market decreased slightly by 0.5%
YoY to 84.7%, leaving approximately
610,800 sqm of vacant retail space as
of 31 December 2015.
The occupancy rate of leased retail
centers in Jakarta stood at 90.1% at
end 2015, while the occupancy rate
of the strata-title centers increased
slightly to 70.8%, considerably below
that of the retail malls.
OUTLOOK
The outlook for quality retail spaces
looks promising in the next 12 months
as both local and foreign retail players
continue to remain active. In the long
term, the rapidly expanding consumer
class and increasing levels of disposable
income, coupled with emerging lifestyle
trend of shopping mall are expected to
fuel the demand for retail space.
ANNUAL REPORT 2015
19
