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.