Retailers Want Mall Construction Moratorium Reviewed

TEMPO.CO, Jakarta - Satria Hamid Ahmadi, deputy secretary general of the Indonesian Retailers Association (Aprindo), said that the moratorium or temporary restrictions on the shopping mall constructions in Jakarta must be reviewed, because "we still need a retail supply. The positive impact [the malls have] on the economy is very visible," he told Tempo last Friday.

The positive impact, he said, is the malls' labor-intensive nature and the job opportunities they create for people with medium education level, i.e. high school and middle school graduates. In addition, the retail market is a major tax contributor; therefore, its development "should not be limited because it will hamper the economy."

The Jakarta administration imposed a moratorium on the construction of new shopping centers to reduce congestion. Given this restriction, mall development will shift to capital's buffer areas.

A research by property consultant Cushman & Wakefield showed that Jakarta's shopping centers remain as an attractive investment to international companies. Indonesia strives as a major destination for international markets due to city's high level of public consumption.

"The demand for shopping center leases match the existing supply," said Cushman & Wakefield managing director David Cheadle.

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