Mon, 24 May 2004

Mall regulation needed: Property expert

Bambang Nurbianto, Jakarta

The absence of a regulation on shopping centers has sparked disorder in their development, turning Jakarta into an unpleasant place to live because of serious traffic congestion.

Property consultant Panangian Simanungkalit said shopping centers had mushroomed out of control without such a regulation to check their development.

"The city administration needs to draft a regulation on shopping centers so that there is a legal basis to order the development of such facilities, particularly in already-crowded areas," he told The Jakarta Post over the weekend.

Previously, head of the city economic agency Sukri Bey said the administration would allow businessmen to build shopping centers in any commercial area.

"The Jakarta City Planning Agency will issue permits for new shopping centers as long as they are built in areas allocated for commercial purposes," he added.

Panangian said public criticisms against the development of shopping centers was sparked by concern about their construction in inappropriate locations, including designated green areas.

He said Greater Jakarta, with a 27 million-strong population, had around 2.2 million square meters of shopping centers with an average occupation of around 85 percent. New shopping centers were thus still needed, he added.

In comparison, Singapore had around 6 million square meters of shopping centers to service a population of only around three million.

Panangian said around 2.5 million square meters of new shopping centers would be constructed in Greater Jakarta by 2007.

"It means the growth of shopping centers is nothing to worry about ... as long as the new facilities are constructed in the proper locations," he said.

Sukri said the administration had not known how much space for shopping centers would be needed in the city, and that the economic agency would hold a study on the demand for malls.

"Hopefully, the study will be completed by the end of this year," he said, adding that the city had 73 shopping malls, six wholesale centers, 116 department stores, 125 supermarkets and 151 traditional markets.

Urban sociologists have criticized the administration that while it facilitated the rapid growth of shopping malls, it had ignored the lack of open and green spaces.

They said the condition only encouraged people to spend their leisure time in shopping centers, and thereby cultivated consumerism.

City data shows that only 30 percent of visitors make a purchase at malls, while the majority 70 percent do not.

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

Green areas now amount to less than 10 percent of the 650 square kilometers that make up the capital. Under the 2010 City Master Plan, green areas are to be expanded to 13.94 percent, but no concrete efforts have been made to implement the plan.

In addition, the proposed expansion of green areas is still far from the ideal -- 30 percent of the city area.