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Operators seek incentives to build malls in future capital
The APPBI is asking the government for support in providing incentives for investors to develop shopping centers in the country's future capital, especially considering the limited footfall owing to the city's current small population.
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Cranes and other heavy equipment operate on Dec. 7, 2023 at a construction site in the Central Government Area (KIPP) of Nusantara Capital City (IKN) in North Penajam Paser regency, East Kalimantan. (Antara/M Risyal Hidayat)
T
he Indonesian Shopping Center Association (APPBI) has asked for the government’s support in incentivizing mall development projects in Nusantara, specifically with regard to easing business procedures and financing.
APPBI chairman Alphonzus Widjaja said that given the small population of the nation’s future capital still under construction in East Kalimantan, the number of customers would be limited, so malls needed government support for local investments.
“While the population [of Nusantara] is growing, it is vital to offer financial or capital relief in order to minimize losses [and prevent] big deficits as the population grows,” Alphonzus told The Jakarta Post on Wednesday.
He added that “financing flexibility and support” could take various forms, such as in relation to interest rates and loan terms, including grace period for repayment of the principal.
“Many incentives and facilities [could] undoubtedly be very beneficial to business players and investors,” Alphonzus underlined, when asked how the government might help with financing mall deveopment.
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Though he had said earlier that construction of shopping centers in the city would be carried out in stages, the APPBI chairman said on Tuesday that many potential investors were not yet ready to build large malls in Nusantara and were more interested in building new malls in Jakarta, news portal Kumparan reported.
