Mal Occupancy Is Difficult To Touch 90 Percent In 2024, What Causes It?

Mall (Photo: dock. Antara)

JAKARTA - The Indonesian Shopping Center Management Association (APPBI) targets the average occupancy rate of shopping centers or malls to reach 90 percent this year. However, this target is difficult to achieve because entrepreneurs are reluctant to open new shops.

APPBI General Chair Alphonsus Widjaja said the average national mall occupancy before the COVID-19 pandemic was at 90 percent. Then, it decreased by about 20 percent due to the COVID-19 pandemic, so it was only around 70 percent.

The occupancy rate of this mall, continued Alphonsus, will improve at the end of 2023 with 80 percent. However, he said, entering the beginning of 2024, there were concerns because retail entrepreneurs in their business plans did not include plans to open new stores.

"So there are so many retail entrepreneurs who are Tbk, who are public companies, some even don't target opening new stores in 2024. So we at shopping centers are quite worried about this condition and situation," he said at a press conference at the Hippindo National Conference, in Jakarta, Tuesday, January 16.

According to Alphonsus, delaying the opening of new shops is a threat to the sustainability of the domestic shopping center industry. To achieve 90 percent occupancy in 2024, an increase in the number of tenants is needed.

Alphonsus said the rise of illegal imports was one of the factors that motivated entrepreneurs to be reluctant to open new malls or shopping centers. This condition is exacerbated by the government's treatment of online and offline trade.

According to him, some of the goods sold online are illegal imported goods. Meanwhile, the imposition of taxes is also distinguished between online traders and offline traders. This condition is increasingly difficult with the issuance of Regulation of the Minister of Trade (Permendag) Number 36 of 2023.

"So again, we are worried that in 2024 there will be stagnation in the retail business industry because the two categories are disrupted by imports and their domestic products are disrupted," he explained.