Jakarta, Surabaya, Medan and Bandung are the most sought after cities for investors seeking to engage in the retail sector, a recent study from property consultant Jones Lang LaSalle reveals.
The study, revealed Thursday, suggests that the cities are launch pads for new entrants into the retail sector to expand in Indonesia.
"For retailers with international brands, the cities are categorized as 'must-have locations'. Luxury shopping malls are already available in these cities," LaSalle said in a statement.
The study was based on several factors, including retail stocks, demand and proposed constructions.
As different types of shopping centers and concepts can be found in the four cities, from traditional high-street stores to shopping malls of international standard, they now pose as the centers for mall development.
LaSalle has estimated that more than 50 percent of modern shopping centers in Indonesia are located in the five cities.
The company also categorized Makassar, Bogor, Depok, Bekasi, Tanggerang, Solo, Denpasar, Semarang, Yogyakarta, Palembang, Pekanbaru, Balikpapan and Samarinda as emerging markets.
Economic growth experienced after the regional autonomy regime was applied in 2002 has created an increasing demand for shopping centers.
The study also concludes that Batam, Manado, Padang, Bandar Lampung, Malang, Banjarmasin, Tasikmalaya, Cimahi and Pontianak are promising markets.
"These cities could offer promising prospects in years to come," said LaSalle analyst Anton Sitorus, adding that numerous investors had been eying off the cities to get advantages from operating first in the cities. (ewd)