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Hippindo protests different service and rent rates between foreign and local tenants
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Visitors ice skate at a shopping center in Bintaro, Tangerang, Banten. Indonesian Shopping Centers Tenant Association (Hippindo) has protested alleged discriminatory service and rental rates imposed on local retailers by malls. (Antara/Fakhri Hermansyah)
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ndonesian Shopping Centers Tenants Association (Hippindo) has protested the different service and rental rates imposed on foreign and local retailers in malls.
Malls gave more privileges to foreign tenants compared to local ones, resulting in higher operational costs for the latter, Hippindo advisory board member Johnny Andrean claimed.
Service charges imposed on local retailers were fivefold that of foreign ones, the group said, but did not disclose the rental rates.
“Mall owners attract foreign brands with lower rates because they need them to furbish the mall’s image at the cost local retailers,” Johnny said Tuesday.
Accounting for 30 percent, both rates are the biggest contributors to overall tenant operational costs.
(Read also: Mall tenants demand limited hike in rental costs)
Hippindo urged the government to step in, obliging mall managements of malls to carry out fair business practices before local retailers, which sourced most products from local manufacturers, were forced to close outlets, a move that would hit the domestic upstream industry amid slow economic recovery.
In addition, the group also demanded no more than a 5 percent increase in rent and service charges, similar to the inflation rate.
Hippindo comprises 198 fast moving consumer goods (FMCG), restaurants and entertainment venues, running 50,000 outlets and employing 3 million people nationwide. (lnd)
