APPBI Says There Will Be 4 New Malls In Jabodetabek Before Eid 2024

Chairman of the Indonesian Shopping Center Management Association (APPBI) Alphonzus Widjaja (leftmost). Photo: Theresia Agatha/VOI

JAKARTA - Chairman of the Indonesian Shopping Center Management Association (APPBI) Alphonzus Widjaja said, there are about four malls in Jabodetabek that will open before Eid 2024.

Alphonzus said that actually the plan to open the mall had been prepared since early 2023.

However, he is still reluctant to talk about the names of the malls that will open, including who the owners are.

"There will be many malls that will open. Before Lebaran alone, in Jabodetabek there will be 3-4 malls," Alphonzus said at a press conference in the Kuningan area, South Jakarta, Thursday, January 18.

He said that although the plan to open the new mall was carried out, it was predicted that the occupancy rate or the number of retailers opening their businesses in malls would decrease when compared to before the COVID-19 pandemic.

The number of retailers who opened their shops before the COVID-19 pandemic reached around 1,000 stores per year.

In fact, APPBI itself revised the mall occupancy target for 2024 from 90 percent to 80 percent.

According to him, the revised target was carried out because the government revised policies and regulations for illegal imports that made retail products entering the country tightened.

The regulation is contained in the revision of the Regulation of the Minister of Trade (Permendag) Number 25 of 2022 concerning Import Policies and Regulations by changing the regulation of import trade from post border to border for 8 commodities.

With the tightening of the entry of imported goods, many retailers complained that their products were stuck abroad.

"APPBI believes that they actually have an optimistic target of 90 percent by 2024. However, after conducting various discussions with retailers, one of the problems is import restrictions. The retailers' goods that were willing to fill out the malls were delayed because their goods were stuck (rules) to tighten imports," he said.

Alphonzus assessed that the regulation on tightening imported products was less effective in protecting local products.

"Without realizing it, the plan to limit imports if studied further could threaten the sustainability of the Indonesian retail industry because it interferes with local products of illegal goods," he explained.

"There are many illegal goods online that disturb local products. The problem is that the government gives its actions not illegal, but restrictions on imports. Meanwhile, official imports will be complicated. Those affected (impact) are retail heads whose brands are clear, the process is clear, paying taxes is clear. However, this is limited," he added.