The Jakarta Post
Ferry said the main indicator of mall development was population density and the availability of transportation infrastructure. (Shutterstock/File)
Though one might argue that the capital city of Jakarta already has too many shopping malls, a commercial real estate consultant stated that at least five more would be built by 2020.
"Big developers are still eyeing the shopping center business in Jakarta; the market is still a prospective one," said Colliers Indonesia associate director Ferry Salanto in Jakarta on Wednesday as quoted by tempo.co.
According to the company's research, the supply of malls in Jakarta will continue to increase, with plans to develop five new shopping centers, with a total net leasable area (NLA) of around 350,760 square meters currently in the pipeline between 2018 and 2020.
Additionally, up to six new malls with total NLA of around 225,685 sqm are set to be built in Bodetabek (Bogor, Depok, Tangerang and Bekasi).
Meanwhile, the country's second-biggest city, Surabaya in East Java, will have at least five new malls with a total NLA of around 139,465 sqm by 2020.
Ferry said the main indicator of mall development was population density and the availability of transportation infrastructure. "In Jakarta, we see that both of these indicators exist."
According to Central Statistics Agency (BPS) data, Jakarta was home to a population of 10.37 million in 2017, or 18.1 million people including those living in Bodetabek.
However, Ferry said there was a possibility that the license moratorium of mall developments issued in 2011 would be revised by the Jakarta administration when the infrastructure projects in the capital are complete, "because the background of limiting the number of malls is to avoid more traffic congestion, which will soon be resolved with the availability of the LRT [light rapid transit] and MRT", he said. (kes)