Governor: Jakarta needs more retail centers

Governor: Jakarta needs more retail centers

Bambang Nurbianto, The Jakarta Post, Jakarta

Construction of supermarkets, shopping malls, and other shopping
facilities will likely continue in the city as Governor Sutiyoso
says his administration welcomes those interested in the
business.

"We still need more shopping facilities as you can see that
the existing shopping malls are always crowded," Sutiyoso told
the media on Friday.

Another indication that Jakarta still needs many more shopping
facilities, according to the governor, is that developers'
interest in building such facilities remains very high.

According to data from PricewaterhouseCoopers (PwC), up to
December 2002 shopping centers in the city occupied some 1.54
million square meters of floor area. But, there is no official
estimate on the city's actual need for shopping centers.

The figure, however, did not include some 370 square meters of
shopping facilities built in Greater Jakarta: Tangerang, Depok,
Bekasi, and Bogor.

The latest shopping centers constructed last year in the city
are the ITC Kuningan, Plaza Ciputat, Senayan Trade Center, Plaza
Kelapa Gading, Kelapa Gading Mall III, Cilandak Town Square and
Citra Gran Mall.

Head of planning and development division at the City Planning
Agency Agus Subardono said the majority of the city's shopping
centers are built in Central Jakarta, followed by South Jakarta,
North Jakarta, West Jakarta, and East Jakarta.

Shopping centers which are still under construction include
those in Kemayoran, Cempaka Putih, Senayan, Permata Hijau,
Semanggi, Lebak Bulus, Cipulir and Mangga Dua.

At least four shopping centers will be opened next year,
namely the Mangga Dua Square, North Jakarta, Plaza Semanggi,
South Jakarta, Cililitan Wholesale Center, East Jakarta, and Mal
Arta Gading, North Jakarta.

Earlier on Thursday, Sutiyoso gave the green light to a
private company to construct a textile and garment trading center
in Cipulir, South Jakarta. The two-hectare market is expected to
ease the burden of the Tanah Abang garment and textile market in
Central Jakarta.

Rusdi Yusuf, head of the City Development Planning Board
(Bappeda), revealed on Thursday that the proposal for the Cipulir
market was submitted by private company PT Aspac Mitra
Consultindo.

Many of the shopping malls occupy land that was originally
allocated for open green spaces. They include Plaza Senayan, Mal
Taman Anggrek, and a number of malls in Kelapa Gading, North
Jakarta.

Environmentalists have often criticized the city
administration for issuing permits for shopping centers even
though the city suffers from a serious shortage of open green
spaces.

The existing green area is now less than 10 percent of the
total Jakarta area of 650 square kilometers. Based on the 2010
City Master Plan, the city plans to increase the green area to
13.94 percent, but there have been no concrete efforts to
implement the program. The proposed increase in green area is
still far from the ideal figure, which should be around 30
percent of Jakarta's total area.

Environmentalist have warned that the decrease in the green
area will have serious consequences. Among them, water shortages,
since a lack of open spaces will reduce the city's ability to
absorb rainwater.

"As a result, the city suffers serious floods during the rainy
season, and serious water shortages during the dry season,"
chairman of the Environmental Tax Force Ahmad Syafrudin told The
Jakarta Post recently.