Multa Fidrus, The Jakarta Post, Tangerang | Tue, 03/25/2008 11:20 AM
Mall developers say that despite the rapid construction of new shopping malls in Greater Jakarta in recent years, further expansion is viable enough that the number of malls here could double by 2011.
The chairman of the Jakarta-Banten chapter of the Indonesian Shopping Center Association (APPBI), Andreas Kartawinata, said the increasing population density and improving socioeconomic conditions were the main factors behind the opportunity.
He said close proximity of malls had nothing to do with the survival of each.
"The success of mall businesses will be decided by attractions presented by each mall," he said.
Andreas said the APPBI catered to 60 shopping malls in Greater Jakarta, a quarter of which were located in Tangerang.
PT Lippo Karawaci leads in the expansion of big shopping malls, building and managing more than 20, while PT Sinar Mas, with its ITC malls, comes in the second, he said.
Andreas predicted the number of shopping malls in Greater Jakarta would double by 2011.
He said to survive in the long-term, shopping malls in Tangerang should also cooperate, not only compete.
He cited the success of the Orchard Road shopping district in Singapore.
"Orchard Road consists of shopping centers stacked together, with no distance between them. All attract visitors and make a profit since they cooperate with each other," he said.
PT Lippo Karawaci spokesman Paulus Tambunan said the mall business was still lucrative, adding that most retail space at malls under his company's management were leased to tenants.
"It's easier to manage with a leasing system for the survival and the progress of the shopping mall," he said.
He said among Lippo's shopping malls using a leasing system were Plaza Semanggi, Mega Mall Pluit, Lippo Cikarang and Cibubur Junction, Pejaten Village, Ekalokasari Plaza, Kemang Village and Puri Village Malls in Greater Jakarta, and Bandung Indah Plaza and Istana Plaza in Bandung and Binjai Supermal in North Sumatra.
However, Paulus said some malls were still struggling to attract tenants.
"Spaces at other Lippo malls such as Belanofa Country Mall in Sentul, WTC Serpong and Metropolis Town Square in Tangerang, Depok Town Square in Depok, Medan Grand Paladium in North Sumatra, GTC Makassar in South Sulawesi and City Octomoro in Surabaya are for sale," he said.
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