Hypermart Detos Reportedly Shutting Down as Indonesia’s Retail Outlook Remains Unexpected
Jakarta, CNBC Indonesia — The reported closure of Hypermart’s outlet at Depok Town Square (Detos), West Java, has attracted attention amid changes in the national retail industry. Budihardjo Iduansjah, chairman of the Indonesian Retailers and Shopping Centre Tenants Association (Hippindo), said the retail business in Indonesia could in fact perform better, although it still faces supply constraints.
“Retail conditions could actually be better, given the state of customer demand. Broadly speaking, however, the sector is stable because we are short of goods, with shortages affecting both imported and locally produced items,” Budihardjo told CNBC Indonesia on Tuesday (27 October 2026).
He said the supply constraints required attention because the consumption sector is one of the key drivers of the national economy. The flow of goods therefore needs to be maintained to prevent disruption to trading activity.
Budihardjo urged the government to make it easier to do business, particularly with regard to import permits, investment, factory construction, and the procurement of raw materials and finished goods that cannot yet be produced domestically.
“We need many business-friendly measures in licensing, for imports and other areas, so that investment and factory construction can proceed, and raw materials or finished goods that are not produced here can be imported. The consumption sector is crucial to Indonesia’s economy, so it must not be disrupted,” he said.
He stressed that supporting consumption involves not only the trade in goods, but also other sectors that underpin people’s economic activity, from tourism to shopping centres.
“Consumption-related sectors, including tourism, trade, shopping centres and retail, must be sustained,” Budihardjo said.
As for Hypermart’s closure at Detos, Budihardjo said a shopping centre’s low footfall could prompt retailers to change location or business format.
“If a mall is quiet, tenant stores will naturally look for a busier one; that is common. If Hypermart’s business is still healthy and it is only closing a quiet outlet — and Detos is rather quiet — it may be looking for a different format or perhaps opening a standalone store,” he explained.
He added that major retailers such as Hypermart needed to adapt their store concepts to changing market conditions. Closing one outlet, he said, did not necessarily indicate that the company’s business was deteriorating.
“Big retailers such as Hypermart face challenges, but they need to change their concepts. It may be changing its concept and opening another kind of store. Closing one shop and opening another is quite normal,” he concluded.