Owners of Lippo Malls and Pakuwon Assert Situation is Safe, Mall Fencing Unnecessary

JAKARTA — The owners of Indonesia’s largest shopping centre networks, James Riady of Lippo Group and Alexander Tedsson of Pakuwon Group, have affirmed that the national security situation remains stable, rendering the installation of perimeter fences at malls unnecessary. They stated that the placement of fences at several shopping centres was an initiative by local management rather than a corporate-wide policy.

James Riady, Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Foreign Affairs and Chairman of Lippo Group, noted that while Lippo-owned malls previously utilised fencing during past periods of unrest, such measures were dismantled as security improved. “In the past, all malls installed fences during riots. Now, they are no longer needed because the situation is calm,” James told Investortrust on Friday.

Similarly, Pakuwon Group founder Alexander Tedja confirmed that the fencing recently installed at Kota Kasablanka Mall in South Jakarta would soon be removed. Tedja clarified that the decision was made by local management without direction from shareholders or the head office. “It was a local management policy and will be dismantled shortly,” said Alex.

The Minister of Housing and Residential Areas, Maruarar Sirait, stated he had communicated directly with Alexander Tedja after the issue of mall fencing gained public attention. According to Maruarar, Tedja assured him that the fences at Kota Kasablanka would be removed, and arrangements for other Pakuwon properties would be adjusted to avoid creating public misconceptions.

Maruarar expressed appreciation to both James Riady and Alexander Tedja for openly stating that Indonesia’s security remains good. He noted that the communication led to concrete results, including the scheduled removal of fences at Kota Kasablanka starting Monday, 3 August 2026, and agreements by mall operators in Surabaya to adjust fence designs to avoid high, closed constructions.

James Riady argued there is no reason for the public to be anxious about social or economic conditions. He highlighted the government’s success in maintaining purchasing power through strategic policies, such as maintaining subsidies for fuel, household electricity, and 3kg LPG despite global energy price surges. “As long as subsidised fuel, 3kg LPG, and household electricity tariffs remain stable, there is no reason for public unrest,” he said.

He added that this stability is reflected in the robust growth of the shopping centre industry, where demand for retail space from tenants currently exceeds availability. “We are actually facing a shortage of space. The demand to open shops is greater than the supply of space in modern shopping centres. This is a golden era for the mall business,” James remarked.

Driven by these positive prospects, Lippo Group continues to expand. The group currently manages 106 shopping centres across 21 cities in Indonesia, accounting for approximately 25% of Indonesia’s total modern retail space. James emphasised that the recent fencing incidents were isolated cases and did not reflect the broader industry.

Alexander Tedja added that while the issue of mall fencing had circulated widely on social media, he agreed that the current situation is safe. Pakuwon Group remains one of Indonesia’s largest developers, managing major centres such as Tunjungan Plaza and Pakuwon Mall in Surabaya, as well as Gandaria City and Blok M Plaza in Jakarta.