Jakarta still wide open for new malls
Evi Mariani, The Jakarta Post, Jakarta
Despite shopping centers mushrooming in some parts of the capital city, the Jakarta administration is keeping the door open to new investment in trading centers in 2004, saying that the sector is important to create employment.
"We have received six proposals from interested investors to build retail centers in the year 2004," Sukri Bey, head of the economic administration bureau of the city administration, told The Jakarta Post on Wednesday.
"For the time being, let the market decide if the city needs new places for trading activities or not."
Data from the administration reveal that currently there are 73 shopping malls, six wholesale stores, 116 department stores, 125 supermarkets and 151 traditional markets, which are run by city market operator PD Pasar Jaya.
Malls currently under constructed include ITC Grand Permata Hijau and Senayan City in South Jakarta. Even PD Pasar Jaya has decided to turn Tanah Abang textile market, which was gutted in a fire on Feb. 19, 2003, into a mall in the renovation project.
"Economically speaking, Jakarta is still open for new trading places because we need them to absorb unemployed people, whose number reached 567,000 in 2003," he said.
According to statistics, the banking sector takes first place in creating employment followed by the industrial sector and the trading sector.
"The trading sector's role will be more important in the future because several garment factories in Jakarta's industrial bonded zones (in Pulo Gadung, East Jakarta, and Tanjung Priok, North Jakarta) closed down recently," Sukri said.
He emphasized that more investors in the capital were eyeing the trading sector than other sectors.
"It's not a surprise at all. The income per capita in Jakarta reaches Rp 30 million (US$3,529) a year," he said, adding that the figure indicated a huge potential for consumption in the city.
"Shopping malls now are the only places where people can go to shop and for recreation. People can stroll around, and just buy something to eat and drink and nothing else," he said.
Administration data show that only 30 percent of visitors buy something at the mall, with the remaining 70 percent just enjoying their leisure time at the mall.
Sukri said that empowering micro- and small-scale entrepreneurs in the city had became a major concern.
"We have a city bylaw that stipulates that large retailers must provide 20 percent of their total space for small entrepreneurs to rent," he said. "But I have to admit that only a few big retailers have complied with the bylaw. We also haven't imposed any sanctions for violators."