Shopping malls turn into recreational sites<\/p>\n
A few years ago, Jakarta experienced a mega-shopping mall
\nboom. How is the situation today? Is it feasible to develop new
\nshopping malls? The Jakarta Post looks into the issue. More
\nstories on Page 7.<\/p>\n
By Rita A. Widiadana and Sri Wahyuni<\/p>\n
JAKARTA (JP): Shopping malls have recently become popular
\nrecreational sites for Jakartans.<\/p>\n
Ten years ago, a shopping center with only a department store,
\na supermarket and small shops could attract crowds. But demand
\nhas changed. Consumers demand a place that has assorted stores
\nand a variety of entertainment and leisure activities in one air-
\nconditioned complex.<\/p>\n
Megananda, an executive and a mother of two, said she often
\nbrings her family to malls on the weekend and holidays.<\/p>\n
\"Going to a shopping center on weekends is almost obligatory
\nfor our family. We save time by doing our shopping there. It is
\nvery practical,\" Megananda said.<\/p>\n
Many shopping centers, she added, also provide entertainment
\nfor both adults and children, so her entire family is happy.<\/p>\n
Harry Ciptadi, a 37-year-old banker, said that he went to shop
\nfor high-quality brand names and his daily necessities at malls.<\/p>\n
A number of shopping malls in Jakarta meet these requirements.
\nPlaza Indonesia in Central Jakarta was the first shopping center
\nin town to be built with the super-block concept linking the mall
\nwith a five-star hotel and office building. Its 40,000-square-
\nmeters of shopping area is home to 300 shops, including a Sogo
\ndepartment store, a Times Bookstore, a Hero Supermarket, a Sega
\nentertainment place, a food court and boutiques selling
\ninternational brand names and other luxury goods.<\/p>\n
Sylvia Ratulangie, the corporate secretary of PT Plaza Realty
\nwhich manages Plaza Indonesia, told The Jakarta Post that after
\nfive years of operation, Plaza Indonesia's 17,000 visitors a day
\nsee it as a family shopping center for middle and upper-class
\nJakartans.<\/p>\n
\"We try to keep adjusting our products and services to
\nconsumer demands and shopping trends,\" Sylvia said.<\/p>\n
The Pondok Indah Mall in South Jakarta, is another place where
\nJakartans hang out.<\/p>\n
\"A modern shopping center must offer a large variety of
\nattractions otherwise it is very hard to draw potential clients,\"
\ndeputy general manager Wibyakto said.<\/p>\n
The 45,000-square-meter mall has 200 tenants, including
\nseveral anchor tenants like the Singaporean-franchise Metro
\ndepartment store, Marks and Spencers and the Gunung Agung
\nBookstore. The mall has a cinema complex, water park and swimming
\npool, a fitness center, a museum and even a day care for babies
\nand toddlers.<\/p>\n
The mall receives an average of 25,000 people a day. The
\nnumber increases to 40,000 on weekends and holidays.<\/p>\n
Citraland in West Jakarta and Bintaro Plaza, Blok M Plaza and
\nBlok M Mall in South Jakarta are also favorite shopping
\ndestinations.<\/p>\n
Opportunity<\/p>\n
Although the number of shopping centers has met consumer
\ndemand, many investors believe there is still huge opportunities
\nin developing more shopping malls. In the last few years, Jakarta
\nhas experienced a mega-shopping mall boom.<\/p>\n
Two mega-malls, Plaza Senayan and MegaPasaraya, opened late
\nlast month and several other massive shopping malls will open
\nthroughout the city early next year. The planned shopping malls
\ninclude Kelapa Gading and Pluit Mega Mall in North Jakarta, Super
\nMall Lippo Village Galleria and Taman Anggrek Mall in West
\nJakarta and Pasadena Mall in East Jakarta, each of which has more
\nthan 10,000 square meters of new retail space.<\/p>\n
When these new shopping centers are completed in the middle of
\nnext year, Jakarta will have 1.5 million square meters of retail
\nspace.<\/p>\n
According to a Collier Jardine property consultant, the
\nconstruction of new shopping malls is still economically
\nfeasible. As compared to Singapore, available shopping center
\nspace in Jakarta is still at a minimum. Singapore has only four
\nmillion people but two million square meters of shopping space.
\nJakarta, whose population is expected to reach 10 million by the
\nyear 2,000, has less than one million square meters to serve over
\n8.5 million people.<\/p>\n
The demand for modern shopping centers is directly related to
\nthe growth in Jakarta's middle and upper-class. Although
\nIndonesia's per capita income is only US$800, disposable income
\namong the urban rich is extremely high. In Jakarta, for example,
\n25 percent of the total population spends between $1,776 and
\n$4,200 a year.<\/p>\n
The increased spending power of the middle and upper income
\nbracket makes building shopping centers profitable and therefore
\nvery competitive.<\/p>\n
\"Rapid development of shopping centers will continue if the
\nnumber of people who can afford consumer goods also grows,\" Budi
\nSugarda from the Management Institution of the University of
\nIndonesia said.<\/p>\n
Sugarda added that it is normal for the demand for convenience
\nto increase because many Jakartans can afford to pay for good
\nquality and good service.<\/p>\n
\"The question is whether they spend most of their income on
\nconsumer goods. Don't they think about saving their money or
\ninvesting it in profitable business activities?\" Sugarda asked.<\/p>\n
He said consumer habits have changed markedly with the growth
\nof shopping malls. \"People would likely be more consumptive,\" he
\nspeculated.<\/p>\n
Sugarda, however, said that the development of mega-malls will
\ndestroy small retailers, especially family-run businesses.<\/p>\n
\"Traditional stores and family-run shops will hardly survive
\nas people prefer to go to the more comfortable shopping malls
\nwhich sell similar products at a lower price,\" he said. This has
\nalready happened in the United States and Europe, he added.<\/p>\n
Suryadharma Ali, the secretary-general of the Indonesian
\nRetail Merchants Association, told the Post that many retailers
\nare skeptical that the new space will ever be put to good use.<\/p>\n
Try telling that to Megananda's family.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/shopping-malls-turn-into-recreational-sites-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }