Jakarta Retail Market Report - Colliers International

2Q 2012 i the knowledge
research & forecast report
jakarta rEtaIL MarkEt
www.colliers.co.id
Property Sector Overview
retail sector
after being relatively flat for several periods, the jakarta retail market finally saw a moderate increase of
almost 9% in asking base rental rates as a result of rent adjustments made by shopping malls with high
occupancy and by shopping centres with recently completed major renovation. the average asking base rental
rate for available typical floors in DkI jakarta is IDr413,382 / sq m / month.
Supply
jakarta
jakarta retail cumulative supply
s q m
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2000
2001
2002
2003
2004
2005
2006
Colliers International Indonesia - research
the jakarta retail market again saw no additional retail space this quarter. Despite reaching the
final stage of construction, six retail centres which are projected to bring new supply in 2012 have
not been completed. One of the projected developments is eXion Mall located within the kemang
Village complex. a hypermarket opened last year but the mall will only be officially launched in
October 2012. Similarly, a big mall in the kasablanka area, South jakarta is speeding up
construction to hasten its completion. this more than 100,000 sq m mall will officially open in the
first month of 3Q 2012. the other retail centre is Pulomas Xventure which will feature the
entertainment attraction like labyrinth jungle, bumper boats and flying fox within the mall. another
mall showing commitment to open as scheduled is Ciputra World (now known as Lotte Shopping
avenue after being entirely leased by Lotte). this mall is finishing work on the façade as a final
preparation before opening soon.
With no new malls entering the market, the total supply of retail space in jakarta was 4.04 million
sq m in 2Q 2012. this number is similar to the previous quarter.
2007
2008
2009
2010
2011
1Q 2012
2Q 2012
2012F
2013F
2014F

jakarta | 2q 2012 | retail
p. 2 | colliers international
Overall, from 2000 through 2011, the average
jakarta retail supply showed an annual growth
of 12.2%. this growth demonstrated additional
supply of 249,593 sq m per year during the
s q m
jakarta retail cumulative supply based on region
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2000
2001
2002
2003
2004
2005
2006
CBD Central jakarta South jakarta North jakarta East jakarta West jakarta
Colliers International Indonesia - research
Based on region, the retail supply in West
jakarta showed the lowest average growth at
6.5% per year between 2000 and 2Q 2012.
after Central Park in 2009, there were no new
malls opened and the cumulative supply stayed
at 597,210 sq m. New retail space will only
become available in 2013 with the opening of St
Moritz Mall.
In the South jakarta area, kota kasablanka Mall
and eXion Mall at kemang Village are expected
to operate in the future. another mall is Pondok
Indah Street Gallery, which is an extension of
Pondok Indah Mall 1 on which construction
started last year. Should these future malls
open, they will contribute 175,152 sq m new
supply.
Since 2010, there have been no new malls
completed in North jakarta. the total supply
stayed at 935,199 sq m and there will be no
new supply in North jakarta up to the end of
2012. the only future mall in the region will be
the Baywalk at Green Bay providing 52,000 sq
m of new retail space in 2013.
although East jakarta had the smallest
cumulative supply as of 2Q 2012, i.e. 299,348
sq m, the region showed growth of 14.6% per
year from 2000 to 2Q 2012. after two smallscale
retail centres came onto the market with
a total of 22,663 sq m in 2010 - 2011, Pulomas
XVenture and Cipinang Indah Mall are anticipated
to bring 45,200 sq m of new supply in two
years.
Central jakarta, which covers retail areas like
Menteng, Gajah Mada, Senen and tanah abang
showed 18.2% average growth from 2000 to
2Q 2012. the golden age of the retail supply in
period. With 282,827 sq m of new retail supply
entering the market in 2012, it will maintain an
average growth above 200,000 sq m per year.
2007
2008
2009
2010
2011
1Q 2012
2Q 2012
2012F
2013F
2014F
Central jakarta occurred from 2002 to 2005
when there was 566,173 sq m. the total supply
for the region was 747,410 sq m as of 2Q 2012.
However, due to limited land, no new retail
centres have been opened in Central jakarta
since last year. It seems that the trend will
continue until the end of 2014.
Unlike Central jakarta, the scarcity of vacant
land currently does not impact the influx of
retail supply in the CBD. the total cumulative
retail space was 719,593 sq m in 2Q 2012,
reflecting an annual growth of 12.8%. the latest
shopping centre was kuningan City Lifestyle
Mall in late 2011. Ciputra World Mall in jalan
Satrio is projected to open in the second
semester of 2012.
Several under-construction retail centres
projected to enter the market in 2013 are
rushing their work progress to meet the
completion schedule. Cipinang Indah Mall and
the Baywalk at Green Bay Pluit have almost
completed the construction of building
structures. Meanwhile, only just starting work
on the basement, St Moritz Mall confidently
stated that they will be completed next year.
these future malls will add another 129,200 sq
m of retail space in jakarta.
apart from construction activities, other issues
like supply reduction will occur in jakarta. a
retail centre located in tendean, South jakarta,
will close in the next quarter of 2012. the
landlord is planning an apartment development
and will replace the mall which has been in
operation since 2002. another supply reduction
will probably happen in one year. a mall located
in jalan thamrin will cease operations and as a
result, an office tower is planned to replace the

list of future shopping centres in jakarta
existing mall. Still around the thamrin area, a
retail centre which has been in operation since
1962 is planned to be revamped. Later on the
shopping centres name location region
nla
(sq m)
status
2012
kota kasablanka kasablanka South jakarta 110,000 Under Construction
eXion Mall kemang Village antasari South jakarta 56,052 Under Construction
Ciputra World jakarta Satrio South jakarta 78,000 Under Construction
Menteng Square Proklamasi Central jakarta 4,475 Under Construction
Pulomas X’Venture Pulomas East jakarta 25,200 Under Construction
Pondok Indah Mall Street Gallery Pondok Indah South jakarta 9,100 Under Construction
2013
Cipinang Indah Mall Cipinang East jakarta 20,000 Under Construction
the Baywalk @Green Bay Pluit Pluit North jakarta 52,000 Under Construction
St. Moritz Puri Indah West jakarta 129,200 Under Construction
2014
Mall at the City Centre kH Mas Mansyur Central jakarta 35,000 Under Planning
the Gateway Pondok Gede East jakarta 10,000 Under Planning
Pantai Indah kapuk Mall Pantai Indah kapuk North jakarta 30,000 Under Planning
Colliers International Indonesia - research
2016
Pondok Indah Mall 3 Pondok Indah South jakarta 40,000 Under Planning
bodetabek
bodetabek retail cumulative supply
s q m
3,000,000
2,400,000
1,800,000
1,200,000
600,000
0
2000
2001
2002
2003
2004
2005
Cimanggis Square is the latest shopping centre
in the jabodetabek area and there will be no
new retail centres afterwards in the outside
jakarta area (Bodetabek). two retail centres in
tangerang, Mall Bale kota and alam Sutera
shopping malls will only be completed at the
end of 2012.
2006
2007
jakarta | 2q 2012 | retail
landlord will extend its leasable area and the
whole compound will remain as a commercial
centre with a hotel.
2008
2009
2010
2011
1Q 2012
2Q 2012
2012F
2013F
2014F
Colliers International Indonesia - research
the absence of new shopping centres
maintained the cumulative supply in Bodetabek
area at 1.93 million sq m however, this area is
still perceived as a potential area for the retail
market to grow. today, there are several areas
with growing business and residential areas in
the outside of jakarta which have potential for
retail businesses.
colliers international | p. 3

jakarta | 2q 2012 | retail
list of future shopping centres in bodetabek
In Bekasi, there will be 138,285 sq m of new
retail centres projected to be completed in 2013
and as of this quarter, all retail centres are
reported to have reached the final stages of
construction.
In 2Q 2012, some shopping malls were
bodetabek cumulative supply based on region
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
hastening construction to meet their completion
dates. Some of these malls are Cibinong Citymal
in Bogor and four retail centres in Bekasi
including Bekasi junction, Grand Metropolitan
Mall and Grand Galaxy Mall while the extension
of Citra Gran Mall is scheduled for completion
in early 2013.
Bogor Depok tangerang Bekasi
Colliers International Indonesia - research
nla
shopping centres name location region
(sq m)
status
2012
Shopping Mall at alam Sutera alam Sutera tangerang 68,000 Under Construction
Mall Balekota tangerang tangerang 25,000 Under Construction
2013
Grand Galaxy Mall Bekasi Bekasi 23,000 Under Construction
Bekasi junction Bekasi Bekasi 42,000 Under Construction
Grand Metropolitan Mall kalimalang Bekasi 40,000 Under Construction
Urbana Cinere Cinere Depok 30,000 Under Planning
Cibinong City Mall Cibinong Bogor 30,000 Under Construction
Mall Ciputra Citra Gran Cibubur Bekasi 26,000 Under Construction
Plaza Cibubur extension Cibubur Depok 2,000 Under Construction
2014
Bintaro Xchange Bintaro tangerang 45,000 Under Planning
Lippo Cikarang Citywalk (phase 2) Cikarang Bekasi 10,000 Under Planning
Summarecon Bekasi (phase 1) Bekasi Bekasi 35,000 Under Planning
Mal Harapan Indah Bekasi Bekasi 44,420 Under Planning
the Breeze Sinar Mas Land Serpong tangerang 24,300 Under Planning
Bekasi trade Center 2 Bekasi Bekasi 30,000 Under Planning
2016
Cimandala City trade Center Bogor Bogor 30,000 Under Planning
Summarecon Bekasi (phase 2) Bekasi Bekasi 40,000 Under Planning
p. 4 | colliers international
s q m
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1Q 2012
2Q 2012
2012F
2013F
2014F
Colliers International Indonesia - research

Demand
existing retail performance
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
jakarta
2007 2008 2009 2010 2011 1Q 2012 2Q 2012
as of 2Q 2012, the occupancy rates of retail
centres for lease in jakarta improved moderately
to 89.5% Q-o-Q. thanks to middle-class retail
centres like tebet Green, Pasaraya Blok M,
Plaza Semanggi, kalibata City, POINS and f’X
Lifestyle x’nter which maintained the overall
performance.
Occupancy rates for middle- to upper-class
malls achieved an average of 93.3% in 2Q 2012
up mildly compared to the previous quarter.
kuningan City, a new mall which has been
operating since last year, has a good occupancy
rate together with other middle- to upper-class
malls.
On the other hand, middle- to low-class malls
showed a moderate decline in occupancy
during the quarter. In 2Q 2012, the average
occupancy rate of this class was 85%. the high
competition among the electronics and gadget
retailers located in Mangga Dua. Has created
rivalry among stores which caused some
tenants (fashion and accessories) to pull out.
this was also seen in a mall located in the Blok
M area of South jakarta. all in all, it is not
always market competition which causes some
retailers to terminate their business which
decrease the occupancy level of a mall. Some
landlords are now quite selective in sorting out
their existing tenants (low performing tenants
are replaced). Other than that, some renovation
work at a mall may also affect the overall
occupancy.
the food and beverage (F&B) businesses are
some of the most active retailers which help
maintain the level of occupancy. the industry
has grown faster in the second quarter after
slowing in the prior quarter. they are likely
jakarta | 2q 2012 | retail
jakarta BoDetaBek
Colliers International Indonesia - research
speeding up expansion in anticipation of the
Islamic holiday, Idul Fitri, when people usually
spend more for both F&B and fashion. Plaza
Semanggi, kalibata City Square, tebet Green,
f’X Lifestyle x’nter, Plaza e’X, kuningan City,
Central Park and Plaza Festival are malls with
F&B domination which opened in 2Q 2012. For
example, roppan and kenny rogers restaurant,
which are located in the main entrance of Plaza
Semanggi, have been open since May 2012.
Likewise, the Coffee Bean & tea Leaf opened
at tebet Green and Central Park Mall. the
largest F&B invasion was at Plaza Festival
(now known as Passer koeningan), a mall that
combines sport, entertainment and culinary
concepts which welcomed Betawi tempo
Doeloe as an anchor tenant during 2Q 2012
with 2,200 sq m of space.
Fashion retailers of shoes, bags and accessories
are the second most active. Some brands are
quite active this quarter including Color Box,
atmosphere, Gallop, armani jeans, Hugo Boss,
the Little things She Needs, Crocs, rococo,
Barbara Shoes, Class room and Furla.
In addition to F&B and fashion, other retailers
like home equipment, gadgets and electronics,
entertainment, beauty, health and personal care
were active tenants in 2Q 2012. In the home
equipment category, three retailers have taken
large spaces between 1,000 and 7,000 sq m at
malls located in South jakarta. ace Hardware
and Informa, two retailers in the kawan Lama
Sejahtera group of companies, opened at tebet
Green and Pasaraya Blok M while Home
Solution will open at Plaza Semanggi. During
2Q 2012, ace Hardware has been operating
while Informa and Home Solution are doing fitout
work.
colliers international | p. 5

jakarta | 2q 2012 | retail
list of new major tenants during 2q 2012
occupancy rates based on class
Colliers International Indonesia - research
shopping centres name location region retailers line of business
Plaza Festival Hr rasuna Said South jakarta Passer koeningan Food and Beverages Ope
Pasaraya Blok M Blok M South jakarta Informa Home appliances Fitti
tebet Green Mall Mt Haryono South jakarta ace Hardware Home appliances Ope
Plaza Semanggi Sudirman South jakarta Home Solution Home appliances Fitti
kuningan City Satrio South jakarta ace Hardware Home appliances Ope
list of new tenants during 2q 2012
Colliers International Indonesia - research
shopping centres name location region retailers line of business status
Plaza Semanggi Sudirman South jakarta roppan Food and Beverages Open
kenny rogers Food and Beverages Open
Dapoer Selera Food and Beverages Fitting Out
Color Box Fashion and accessories Fitting Out
athmosphere Fashion and accessories Fitting Out
tebet Green Mt Haryono South jakarta the Coffee Bean and tea Leaf Food and Beverages Open
kuningan City Satrio South jakarta kay Collection Fashion and accessories Open
Samasara reflexology Beauty and Health Care Open
Plaza e’X MH thamrin Central jakarta Chrysler automotive Fitting Out
Energy Massage reflexology Beauty, Health and Personal Care Fitting Out
NYX Cosmetics Beauty and Health Care Fitting Out
f’X lifestyle x’nter Sudirman Central jakarta Sukasuki Food and Beverages Opening Soon
p. 6 | colliers international
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2007 2008 2009 2010 2011 1Q 2012 2Q 2012
Middle Upper Middle Middle Low
Watsons Beauty and Health Care Fitting Out
Optik Melawai Optical Opening Soon
the Little things She Needs Shoes, Bags and accessories Fitting Out
Crocs Shoes, Bags and accessories Fitting Out
rococo rack Shoes, Bags and accessories Fitting Out
Steps Education and Entertainment Fitting Out
continued

shopping centres
name
location region retailers line of business status
continuation
Mall taman anggrek S. Parman West jakarta the Little things She Needs Shoes, Bags and accessories Open
Erafone Megastore Gadget and Electronics Open
X.to.X Plus Fashion Open
Babara Shoes, Bags and accessories Open
tony & Moly Beauty and Health Care Open
Citraland Daan Mogot West jakarta Gallop Fashion Fitting Out
Samsung Electronics Fitting Out
tX travel Others Fitting Out
Central Park S. Parman West jakarta the Coffee Bean and tea Leaf Food and Beverages Open
armani jeans Fashion Open
Hugo Boss Fashion Fitting Out
Furla Shoes, Bags and accessories Open
Bose Gadget and Electronics Open
Class room Shoes, Bags and accessories Open
Pizza e Birra Food and Beverages Fitting Out
Black Canyon Coffee Food and Beverages Fitting Out
Play House Land kids, Hobbies and toys Opening Soon
Mall artha Gading kelapa Gading North jakarta Optik Melawai Optical, jewellery and Watches Fitting Out
Graha Cijantung Cijantung East jakarta Inul Vizta Entertainment Open
list of new tenants during 2q 2012
bodetabek
the occupancy rate in the Bodetabek area is
relatively stagnant at 86.3%. Overall, the retail
market in Bodetabek saw both leasing activities
and leasing terminations keeping the occupancy
rate the same. the closure of several stores in
some retail centres in Serpong, tangerang has
brought more vacant space. tenants like beauty,
health and personal care, tour and travel, and
money changers ceased operations at the mall
which is located in Serpong main road. Business
competition among retailers has pushed several
tenants to move out of the shopping centre.
again, due to tight competition, several retailers
in a shopping centre located in the BSD,
tangerang could not survive and have vacated
their premises. to anticipate further vacancy,
the landlord tried to approach owners of store
jakarta | 2q 2012 | retail
Colliers International Indonesia - research
units that have been purchased to convince
them to lease the units like retail space (like a
mall) and finding lessees for the space. after
three to five years of operations, the landlord
will return the units to the unit owner. Such
strategy is expected to save the whole premises
from becoming vacant and will boost the
landlord’s reputation.
apart from a declining trend in occupancy,
some leasing activities helped to fuel the overall
performance in the Debotabek area. Living
World, which is located in alam Sutera,
tangerang has increased its occupancy after
one year of operations. Currently the remaining
vacant space is only 20% of the total leasable
area.
shopping centres
name
location region retailers line of business status
Living World alam Sutera tangerang Bebek tepi Sawah Food and Beverages Fitting Out
Colliers International Indonesia - research
colliers international | p. 7

jakarta | 2q 2012 | retail
future retail performance
after having intensive approach and doing a
preliminary study into expanding operations
into Indonesia, German-based giant retailer,
Metro Group has decided to terminate the plan
because they want focus more on improving
sales figures. the cancellation was announced
almost a year after Metro announced their plan
to open their first outlet in jakarta by 2012.
Nevertheless, this action does not affect the
plans of other foreign retailers to expand into
Indonesia. Parkson retail asia (Pra) will open
its first store in jakarta by September 2013,
list of new committed tenants in the future retail centers
pre-commitment level during 2011 - 2014
after successfully negotiating a 10-year lease
agreement for retail space at St. Moritz Mall,
located in the Puri Indah, West jakarta. the
stores, which will occupy 17,101 sq m of retail
space, will target the upper-income market
segment. the new Parkson store will
complement Pra’s existing Centro department
store brand, which has been operating in
Indonesia for around eight years. the firm also
plans to expand the Centro brand to other
regions with rapid growth in the middle-class
population.
shopping centres
name
location region retailers line of business size (sq m) status
St. Moritz Mall Puri Indah West jakarta Parkson Department Stores 17,101 Open in September 2013
p. 8 | colliers international
2014F
2013F
2012F
2011
jakarta bodetabek
Space absorbed annual Supply
0 100,000 200,000 300,000
sq m
2014F
2013F
2012F
2011
Colliers International Indonesia - research
Space absorbed annual Supply
0 100,000 200,000 300,000
sq m
Colliers International Indonesia - research

ental rates and Service Charge
rental rates
rental rates in jakarta and bodetabek area
rp450,000
rp400,000
rp350,000
rp300,000
rp250,000
rp200,000
rp150,000
rp100,000
rp50,000
rp0
after having operated from 2009 to 2011, some
malls which are targeted at the middle- to
upper-class segment increased their rental
rates during 2Q 2012. the increase is in line
with the performance of the mall, i.e. those with
less vacant space will ask for higher rents.
Some newly-opened malls located in Gandaria,
jalan Satrio and jalan S. Parman have reported
that they will adjust the rental rates due to
increasing occupancy. a shopping centre
located in West jakarta which has done some
renovation work has adjusted the asking rents
upward. traffic flow to the mall will be one of
criteria for the landlord to increase or maintain
the current rents.
an increase in the average asking rent was also
seen at the middle-class malls. a shopping
centre located in kramat jati, East jakarta
repositioned itself by having a facelift, redesign,
new interior works and improvement of the
public facilities like tiles, toilets and elevators.
With this additional capital expenditure, the
shopping centre could attract branded retailers
as their new tenants and increase the rental
rates. Still in East jakarta, a long-operating
jakarta | 2q 2012 | retail
2005 2006 2007 2008 2009 2010 2011 1Q 2012 2Q 2012
jakarta BoDetaBek
Colliers International Indonesia - research
mall in jalan Pemuda has succeeded in raising
the asking rental rates after maintaining high
occupancy.
Other ways to increase income in local currency
(rupiah) is to adjust the pegged rate. the
pegged rate is the nominal exchange rate of
local currency against the US Dollar set by the
shopping centre management and it is generally
below market value. this pegged rate is used
by quite a few malls. a mall located in Senen,
Central jakarta adjusted their pegged rate by
IDr500 compared to the previous quarter
which increased the occupancy cost in rupiah
become higher.
Driven by increasing rental rates, the overall
average asking rental rate in jakarta was
IDr413,382/sq m/month. the rental rates are
projected to go higher over the next period
particularly due to the influx of new malls which
come with higher offering rental rates above
the average market. according to our records,
the upcoming malls will have asking rental rates
of between IDr400,000 and 500,000/sq m/
month when they are launched.
colliers international | p. 9

jakarta | 2q 2012 | retail
p. 10 | colliers international
rental rates of shopping centres in jakarta and bodetabek
rp800,000
rp700,000
rp600,000
rp500,000
rp400,000
rp300,000
rp200,000
rp100,000
rp0
service charge
2005 2006 2007 2008 2009 2010 2011 1Q 2012 2Q 2012
the average rental rates for Bodetabek also
showed an increasing trend in 2Q 2012. For
example, a mall in Bekasi has adjusted the
pegged rate which increased the asking rent in
rupiah. Some efforts were made to achieve
higher rental rates. a mall in Depok and two
In 2Q 2012, both jakarta and Bodetabek area
saw an increase in the service charge from
IDr545 to 640/sq m/month. In jakarta, the
Middle Up Middle Middle Low
Colliers International Indonesia - research
malls in tangerang increased the offering rental
rates for the remaining leasable area. Overall,
some of the rent changes have caused the
rental rates in Bodetabek to go higher Q-o-Q to
IDr252,159/sq m/month.
service charge was an average of IDr77,795/sq
m/month while in the Bodetabek area the
service charge is IDr60,956/sq m/month.

jakarta | 2q 2012 | industrial estate
Outlook
the retail market has been gradually performing
better with more leasing activities both in the
operating and upcoming shopping centres.
Landlords are generally quite concerned with
the improving economy which leads to creating
more retail sales and they are quite aware that
amid increasingly high competition level in the
market, they have to follow the dynamics of the
market. thus, quite a few mall owners (in
particular old malls) make capital expenditures
to improve the looks of the mall, change the
interiors, replace non-performing retailers and
adjust the tenancy mix in order to attract more
www.colliers.co.id
crowds so they can ask for higher rents. Even
more, one strata-title retail owner is quite
concerned with the low performance at the
shopping centre and is willing to take unpopular
action to save the performance and the image
of the shopping centre.
Indonesia, as the fourth largest population in
the world, will remain as an interesting market
for investors and retailers. New foreign retailers
have invaded Indonesia and we will see more
foreign retailers particularly from asian
countries expand operations into this country.
512 offices in
61 countries on
6 continents
United States: 125
Canada: 38
Latin america: 18
asia Pacific: 214
EMEa: 117
• $1.5 billion in annual revenue
• 979 billion square feet under management
• Over 12,500 professionals
colliers international indonesia:
World trade Centre 10th & 14th floor
jalan jenderal Sudirman kav. 29 - 31
jakarta 12920
Indonesia
tel 62 21 521 1400
fax 62 21 521 1411
Michael Broomell
Managing Director
World trade Centre 10th & 14th floor
jalan jenderal Sudirman kav. 29 - 31
jakarta 12920
Indonesia
tel 62 21 521 1400 ext 131
fax 62 21 521 1411
Ferry Salanto
associate Director, research
World trade Centre 10th & 14th floor
jalan jenderal Sudirman kav. 29 - 31
jakarta 12920
Indonesia
tel 62 21 521 1400 ext 134
fax 62 21 521 1411
Copyright 2012 Colliers International
the information contained herein has been obtained
from sources deemed reliable. While every reasonable
effort has bee made to ensure its accuracy, we cannot
guarantee it. No responsibility is assumed for any inaccuracies.
readers are encouraged to consult their professional
advisors prior to acting on any of the material
contained in this report.
accelerating success.