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Mall tenants to maintain prices despite hike in rents
Mall rents are projected to rise this year but retailers say they will maintain their prices as long as the increase is not too extreme.
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Gandaria City mall in Jakarta is seen in this undated file photo. (Kontak/Baihaki)
R
etailers in Indonesian malls plan to maintain the prices of their products and services despite expected rises in rent this year, amid rising inflation and the recovery of the sector from the COVID-19 pandemic.
Indonesia Retail and Tenant Association (Hippindo) head Budihardjo Iduansjah told The Jakarta Post that rent inflation is routine and its members would not implement price rises for customers.
“If the rent hike still makes sense, we will deal with it through [business] efficiency,” said Budihardjo on Tuesday.
Last week, real estate agency Colliers Indonesia forecast mall rents will increase by between 5 and 10 percent this year.
“This increase is expected to take place in the second half of 2023 or near the year-end,” said Colliers head of retail services Sander Halsema, as quoted by Bisnis.com.
Halsema said that mall operators had maintained healthy occupancy levels post-pandemic and were thus confident in hiking rents.
Today’s average mall rent in Jakarta is Rp 563,428 (US$37.34) per square meter, still below the 2019 fourth quarter rent of Rp 609,003 per sq. m.
