Shopping centers, malls enjoying upsurge in spending<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): Some shopping centers and malls in the capital
\nare seeing the old habit of local shoppers return: spending their
\nmoney on everything offered therein.<\/p>\n
Although there is no data on the spending habits of shoppers
\nin Indonesia, particularly in Jakarta, several leading shopping
\ncenters in the capital have seen impressive changes in spending.<\/p>\n
Natalia A. Hatmarini, advertising and promotion manager of PT
\nSenayan Trikarya Sempana, the owner and operator of the prominent
\nPlaza Senayan, maintains that public purchasing power has
\nreturned to \"normal\" after the prolonged economic turmoil.<\/p>\n
Another indication is that many outlets are opening more
\nbranches while international brands are facing fiercer rivalry in
\nthe local market.<\/p>\n
\"Our own experience tells us that the waiting list never
\nends,\" she said.<\/p>\n
M. Syohirin, a director of PT Plaza Indonesia Realty, also
\nsaid that Plaza Indonesia always saw an occupancy rate of over 90
\npercent.<\/p>\n
\"We never reach 100 percent as we are continuously
\nrefurbishing one part or another,\" he said.<\/p>\n
Plaza Indonesia and Plaza Senayan are the most prestigious
\nshopping malls in Jakarta. Though two malls are never directly
\ninvolved in sharp competition as each has its own segment.<\/p>\n
\"Perhaps our tenants are the same, but real competition never
\nexists,\" said Natalia.<\/p>\n
She said this could be due to a small number of players in
\nthis field.<\/p>\n
Property consultant Procon Indah\/Jones Lang LaSalle (JLL) says
\nthe ailing property sector in the capital is gradually
\nrecovering, with the retail market leading the rebound.<\/p>\n
The demand in the retail sector was exceptionally strong in
\nthe second quarter of this year, JLL said. The strong demand in
\nthe retail sector was attributable to increased consumer
\nspending, low interest rates and bank liquidity.<\/p>\n
JLL predicts that given a strong demand and an increase in
\nrentals in the retail sector, several postponed construction
\nprojects would likely resume in the short term.<\/p>\n
In the meantime, Ratu Plaza shopping center, a popular mall in
\nthe 1980s, is scheduled to reopen later this month, after being
\nclosed since 1995. One of the victims of the riots in May 1998,
\nPlaza Slipi Jaya in West Jakarta has also recently reopened.<\/p>\n
According to JLL, retail space in Jakarta increased to 1.15
\nmillion square meters, while in the Bogor-Tangerang-Bekasi
\n(Botabek) area, the total modern retail area as of June 2000
\nstood at 264,000 square meters.<\/p>\n
Net take up of Jakarta retail space during the second quarter
\nof 2000 was recorded at 9,100 square meters, compared to 34,150
\nsquare meters in the previous quarter, and in the Botabek area,
\nnet take up was 4,400 square meters. JLL says that the lower net
\nabsorption does not represent weaker real demand.<\/p>\n
No competition<\/p>\n
Nonetheless, Syohirin and Natalia say their malls are not
\ncompeting against each other.<\/p>\n
\"Customers have their own selection and preference. So, even
\nif the market is the same, every mall has its own customers,\"
\nsaid Natalia.\"<\/p>\n
She said that although customers might probably have
\nquestionable loyalty, some people did seek various concepts in
\nvisiting malls.<\/p>\n
Syohirin said, \"The only challenge in running shopping malls
\nis how to maintain safety and security, especially during this
\nkind of political climate.\"<\/p>\n
Syohirin, who is also the chairman of the Association of
\nIndonesian Shopping Centers, said there was also no competition
\nin rental rates.<\/p>\n
He said that as the rate was set in U.S. dollars, the
\nassociation had pegged the dollar to between Rp 3,250 and Rp
\n4,500 per dollar, to alter the amount in rupiah. The rate is
\nevaluated every 6 months.<\/p>\n
\"Every shopping centers can fix their own rates, depending on
\ntheir market segment,\" he said.<\/p>\n
JLL reported the average gross rental ground floor premium in
\nJakarta at Rp 214,600 per square meter a month, reflecting an
\nincrease of 8.2 percent over the second quarter of this year.<\/p>\n
However, the malls must still maintain their appearance to get
\neven more visitors.<\/p>\n
Plaza Senayan, for instance, always tries to have different
\ndecorations.<\/p>\n
\"We know that our segment is young professionals seeking
\nambience. So we want to show something different every month and
\nwhen there's a special event. We also have to be careful in
\nmixing our tenants and merchandisers,\" Natalia said.<\/p>\n
Plaza Indonesia also tries measures to attract visitors.<\/p>\n
\"We regularly hold live music shows. We select popular singers
\nbut also try not to attract too many people because this is a
\nmall,\" Syohirin said.<\/p>\n
Other shopping malls also try to attract visitors.<\/p>\n
Adrianto Budiarsa, marketing manager of PT Perwita Margasakti,
\nwhich runs the Ambassador Mall, said it was important in order to
\ntarget specific segments.<\/p>\n
\"The Ambassador Mall aims to be a mall for IT. We're looking
\nnow for tenants specializing in computers, electronics, the
\nInternet, communications and telecommunications,\" he said.<\/p>\n
By doing so, the Ambassador is promoting itself as the first
\nmall in the city offering IT products and services.<\/p>",
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