Entrepreneurs Worried Retail Turnover Will Drop Due To Capital Transfer To IKN

Mall (Photo: dock. Antara)

JAKARTA - The Indonesian Shopping Center Retailer & Tenants Association (Hippindo) highlighted the fate of DKI Jakarta after the capital city moved to the capital city of Nusantara (IKN) in East Kalimantan. This is because 40 percent of these retail entrepreneurs come from Jakarta.

This was conveyed by the General Chairperson of Hippindo Budihardjo Iduansjah in his remarks at the Jakarta International Investment, Trade, Tourism and SME Expo (Jitex) 2024 press conference at DKI Jakarta City Hall, Wednesday, July 17.

"Hippindo does have a very (big) interest in DKI Jakarta. Hippindo is a retail association and mall tenant, 40 percent of Hippindo's turnover is in Jakarta," said Budihardjo.

"So, we if Jakarta is quiet, it will be dangerous too. Our head office is in Jakarta. Our members have 800 brands, the average office is also in Jakarta," he continued.

Overall, Budi said, only 20 percent of the online sector's contribution to Hippindo members' businesses. Related to this, his party still relies on encouragement from traffic or offline visitor activities to maintain business sustainability.

Therefore, Jakarta's economic development is very important in ensuring the sustainability of entrepreneurs, MSMEs to the Indonesian economy itself. In line with that, his party is actively involved in helping increase traffic or consumer visits to malls.

"Imagine that Jakarta has no practice so far, we are also worried. So, we are very supportive and even actively involved in making all malls crowded," he said.

One way to make this happen is through the procurement of pro-local exhibitions such as Jitex. This event is a collaboration between Hippindo and the DKI Jakarta Provincial Government which will be held on 7-11 August 2024 at the Jakarta Convention Center (JCC).

"The point of showing off is to become a supply chain for suppliers, we have to be easier to find than looking for imported goods," he said.

In addition, his party is also ready to fill empty places such as ministry/institutional buildings that move to IKN and develop them as economic centers in the form of culinary tenants to supermarkets.

"We agree with the concept of international investment, which means there is investment. We are also ready to fill empty places if later it is true that ministries/agencies will move (to IKN). Maybe we can fill the place into a restaurant, supermarket or culinary center. Hippindo will invest there," he explained.

Hippindo also initiated the Shopping Program in Indonesia as part of the 2024 Jitex in facilitating international trade, including tourists visiting Indonesia.

"This means that 40 percent of our sales in Jakarta. So, we really support shopping programs. Tourists, tuh, go home, don't bring anything, bring gifts. So, it is very useful for our hotel, MSMEs, taxis. So, this milestone was said to be very important," he added.