Sogo to open three more outlets early next year

JAKARTA (JP): PT Panen Lestari Internusa, owner and operator of the Sogo Department stores in Indonesia plans to open three more Sogo outlets -- two in Jakarta and one in Surabaya, East Java -- early next year.

Director of Panen Lestari Internusa, Sutrisno, said yesterday the expansion was part of the company's strategy to tap into the growing middle class in the country's major cities.

He said two of the three new outlets would be opened in East Jakarta and South Jakarta. But he did not give any details of the plan.

Panen Lestari operates Sogo Department Stores in Indonesia under a franchise agreement with the Japanese Sogo department store chain.

"At present, there are two Sogo outlets in Jakarta, one in Plaza Indonesia and another in Kelapa Gading Mall," Sutrisno told the press after signing a contract for the extension of the company's leasing contract at Kelapa Gading Mall up to 2005.

The Sogo outlet has operated in the mall since 1992, occupying about 12,000 square meters.

The deal was signed yesterday by Panen Lestari's director Sutrisno and Lexy A Tumiwa, director of Summarecon, which owns and develops the Kelapa Gading Mall.

Sutrisno said yesterday Kelapa Gading Mall had become a lucrative market for department stores like Sogo because people living around the mall were mostly high-class consumers.

"We believe that maintaining the operations of the Sogo Department store in Kelapa Gading Mall will benefit the company," he said.

Sutrisno and Lexy declined to mention the rate of rental space in Kelapa Gading Mall.

Lexy A Tumiwa, quoting data from property consultant Colliers Jardine, said the average rate of shopping space for prime area was between US$70 to $100 per square meter.

"Kelapa Gading Mall applies the same rate," he said.

Lexy said yesterday that Summarecon Agung through PT Sentral Summarecon Sukses (SSS) would commence the development of Kelapa Gading Permai town center early next year.

PT Sentral Summarecon Sukses is jointly owned by Summarecon Agung and businessman Sudwikatmono, a close relative of President Soeharto.

Development of the town center will begin with a six-story building, called Sentral Promenad.

Lexy said Sentral Promenad would consist of street-stall food vendors, restaurants, entertainment centers, an ice-skating rink, exhibition hall and retail space.

Early reports said Sentral SSS, which would spend about $600 million in investment for the development of the town center, would be completed in five years. (aly)