Senayan City Mall one of the biggest mall in Jakarta

"Landep News"

Rapid construction of new shopping center in Jakarta has lead to massive traffic and road congestion as well as city spatial problems. The problem has become so big that the Jakarta Governor Fauzi Bowo plans to do a moratorium on the permits issuance for new shopping mall covering an area of more than 5000 square meters. It is planned that the moratorium would be announced in the near future and will be in force until the end of 2012.

“In a short time I will announce a moratorium on temporary suspension of licensing for the development of new shopping center” said Fauzi said after opening the Regional Consultative Council VII of Real Estate Indonesia (REI) in Jakarta at a hotel in Central Jakarta on Wednesday (13/07/2011).

Senayan City Mall one of the biggest mall in Jakarta

He said that the moratorium is required considering there are still shopping centers that have low level of occupancy and shoppers.” I got quite a lot of input and almost similar from our friends developers saying that permissions for shopping center or mall which has an area of more than 5,000 square meters need to be evaluated,” he said.

During the evaluation period which will last until the end of 2012, Fauzi added, the Jakarta government will not issue any permit for new shopping center establishment while that current development will continue as usual. “The one that already exist will be evaluated while the new license is stopped completely” he said.

Chairman of the Indonesia Shopping Center Management Association Handaka Santosa welcomed the plans to implement the moratorium on construction of shopping malls in Jakarta. “This moratorium could strengthen the foundations of the shopping center business because lack of cusnumers,” he said.

Handaka also acknowledge the existence of shopping centers that are still not optimally occupied as expressed by the Governor. “There are some trade centers that are still empty, hopefully with this moratorium that last until 2012 we can catch up on the occupany” he hoped.

However, Handaka also requested that the moratorium was not in force for too long. Because, with per capita income citizens of Jakarta that reached U.S. $ 10 thousand with the economic growth that reached 6.5 percent, the market can still absorb the existence of new shopping centers.

Currently, there are 68 shopping centers in Jakarta that includes shopping malls and trade center with a variety of classes. Handaka estimate the number of shopping malls in Jakarta could still grow about 5 to 10 percent of the total current of shopping center. “I think that number could still grow between 5 to 10 percent” he said.

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