FOR GENERAL ISSUE: SHOPPING CENTER

FOR GENERAL ISSUE: SHOPPING CENTER

New malls continue to mushrooming in Jakarta

Sudibyo M. Wiradji The Jakarta Post Jakarta

A number of shopping malls in Jakarta will open their doors to the public next year and some others in 2005 following the successful opening of several shopping centers in the capital early this year.

Cilandak Town Square in South Jakarta, Kelapa Gading Mal III in North Jakarta, International Trade Center (ITC) Kuningan in South Jakarta and Roxy Square in Central Jakarta are among the new shopping centers that will open to the public later this year.

Plaza Semanggi on Jl. Sudirman, Central Jakarta, Parisian Boutique Mall and Venetian Mall in Kelapa Gading, North Jakarta are now under construction. These malls will open in 2004 or in early 2005.

These new shopping mall projects followed the successful opening of several new malls in the capital early this year. The Mangga Dua area in North Jakarta which is known as one of Southeast Asia's largest shopping areas saw the opening of new malls this year. The new malls WTC Mangga Dua, ITC Mangga Dua Square and Harco Mas Mangga Dua are located not far from the existing Pasar Pagi Mangga Dua, ITC Mangga Dua and Mall Mangga Dua.

Similarly, Kelapa Gading area in North Jakarta has also seen the opening of several new malls including Gading Trade Center, Kelapa Gading Trade Center and Kelapa Gading Mall III, making this relatively new residential area one of the major shopping destinations in the capital.

Meanwhile, the Senayan area in South Jakarta where Plaza Senayan is located, has also seen the opening of several new shopping centers including Plaza Senayan Trade Center. Not far from Senayan, ITC Permata Hijau is now under construction.

Despite the mushrooming of shopping centers in Jakarta, the demand for retail outlets in Jakarta remains high. "Orders are often made even when the shopping center is still in the blueprint stage," said a property consultant.

According to PricewaterhouseCoopers (PWC), the additional supply of shopping malls will increase the supply in the rental shopping space in Jakarta in 2003 to 1.3 million sq meters compared to 80,000 sq meters in the previous year.

Currently, the average occupancy rate of shopping centers is around 90 percent. "With the current demand, the additional supply will not really affect the market. But if the occupancy rate declines, lets say, to 50 percent or 60 percent, it indicates that there is an oversupply," PWC's property analyst Willie Prasetio told The Jakarta Post.

Despite the opening of several new shopping centers, the leasing rate for shopping outlets remains stable. The monthly rental rate for a standard retail outlet in Jakarta rose to US$44 per sq meter in 2003 compared to US$42 per sq meter in the previous year. The monthly rental rate in Bogor, Tangerang and Bekasi remains unchanged at US$28 per sq meter.

The selling rate of retail outlets in Jakarta also remains stable at between Rp 22 million to Rp 70 million per sq meter, depending on the location. "Most of the new outlets in 2003 are new strata title projects, except for Plaza Indonesia III which is mainly intended for leasing," Willie said.

The increase in the new shopping malls will consequently trigger tighter competition in the way a developer attracts new tenants.

Agung Podomoro Group and its partner Agung Sedayu Group adopt a "tourism concept" in its Parisian Boutique Mall and Venetian Mall.

As reflected in the blueprint, the Venetian Mall will be complete with a variety of world-class attractions such as France's famous Eiffel Tower, jet coaster and gondola to lure visitors to the facilities.

"We believe that with the 'tourism concept', the malls can continue to exist for a long time," said Agung Podomoro Group's senior marketing manager Roy Gosjen.

The two malls with a strong European flavor will be part of luxury shopping facilities of the Kelapa Gading Square now being built under a one-stop living concept. The mega project, covering an area of 17 hectares of land, will comprise a modern residential complex built in French and Italian styles, and modern malls such as the Parisian Boutique Mall and Venetian Boutique Mall.

The four-floor Parisian Boutique Mall will focus on international fashion brands and furniture with accessories. The ground and upper ground floor will be used for international restaurants. Beauty salons, spas, cinemas and an international food city will occupy the first and second floor. "The Parisian Boutique mall is targeted to established parents who enjoy convenience, comfort and privacy of shopping in a tranquil atmosphere or those loyal to a particular famous brand," he said.

The Parisian Boutique Mall will be fitted with a skylight that will allow sunlight to come through the mall interior, providing a pleasant atmosphere for visitors, Gosjen said.

To create a European ambiance, the six-floor Venetian Mall will be equipped with Little Venice, Venice Splash, St. Antonius River Park, Spanish Steps and a waterfall at each end of the interior of the building. The mall will also have special corners such as the Japanese Corner, American Corner, French Corner and Korean Corner. "Each corner will feature a wide selection of items from a country it represents," he said.

"At the Venetian Mall, visitors will be able to find original products from different countries at a relatively lower prices because retailers here will purchase directly from the factory of the respective product in bulk," he said.

The malls are expected to open in early 2005.

Another innovative shopping center under construction is Plaza Semanggi. Located in the heart of Jakarta, Plaza Semanggi will serve as a Lifestyle Shopping Center to meet various fashion needs of people from different ages and gender, from children to adults, male and female.

With its downtown concept, Plaza Semanggi will allow shoppers to see the world on a small scale. "Downtown is the center of everything. Anything that becomes a hit always starts downtown," said Plaza Semanggi Director Veri Y. Setiady.

The shopping center will feature unique cultural activities, a wide variety of cuisine, Mix 'N Match Fashion Boutique, Absolute Entertainment, IT & Electronic Center, classic and modern retro household shops, Kids Heaven and a health care and beauty center.

Plaza Semanggi is being constructed as part of the Graha Purna Yudha Business District covering an area of some 0.5 hectares of land. Construction of Plaza Semanggi commenced in March of this year and is expected to be fully completed in February 2004.