World Famous Fashion And Catering Retailers March Into Indonesia

Research Director, Procon Savills, Indonesia

They are looking for a business location in Jakarta.

He said that these retailers have begun to look for locations, mainly in the upper middle class or the upper class.

One of the reasons why they are optimistic about Indonesia's market is strong purchasing power and growing national economy, he said.

"They decided to enter the Indonesia market because Indonesia has strong economic foundation and strong purchasing power."

He said that the operators of shopping centers are facing great challenges, and prospective tenants usually investigate the shopping centers with high traffic volume.

"Yesterday's concept is confined to department stores. Nowadays, people not only pay attention to shopping, but also pay attention to leisure, dining or lifestyle."

He said that the whole market has business volume within 12 hours, and the volume of traffic is high, so retailers will be interested in running.

He said that in the next two years, the retail industry will focus on fashion and catering, and will set up branches in Jakarta.

Anticipate

"Retail area grew by 4.8% over last year, reaching 3 million 630 thousand square meters.

The absorption rate was 107 thousand sq m in the first quarter of 2011.

Tenants are mainly engaged in the fashion industry and catering industry. "

Between January and March this year, the US dollar rent increased by 10% over the same period last year.