Jakarta Retail Market Supply Slowing Down

Jakarta, Oct 16 (Antara) - The growth of supply in Jakarta`s retail market is slowing down in the third quarter of 2014, property consultant Cushman & Wakefield said. "The retail market in Jakarta will still undergo slow growth of supply," Head of Research Cushman & Wakefield Arief Rahardjo said in a written statement here on Wednesday. He said that the condition would cause shopping centers to spread to regions around Jakarta where housing projects were being developed. Retail property supply slow growth is blamed on the moratorium on the development of shopping centers in Jakarta as a way of overcoming traffic jams. Regarding retail supply, Arief said the Metro Cipulir Wholesale Market is expected to operate by the end of 2014 while the expansion of the Central Park and Lippo Mall Puri The St Moritz are expected to operate in 2015. International property consultant Jones Lang LaSalle (JLL) said meanwhile there were a great deal of leading businesses of world brands which were interested in entering Indonesia`s retail market which they saw as having positive prospect. "There are many international brands which are interested to inter Indonesia`s retail market," Head of Advisory JLL Indonesia Vivin Harsanto noted. Vivian said that the mall construction moratorium in Jakarta has positive impact on the development of shopping centers in Jakarta suburban areas. Vivian cited as an example the presence of the Swedish furniture firm Ikea in the Alam Sutra, North Serpong, in South Tangerang. "The present (less favorable) economic conditions does not reduce the interest of investors to make their investment. What they need is to exercise prudence," Vivian said. Retailer businesses, according to Vivian, are still careful in carrying out business expansion amid present economic conditions. They still have positive perception for 2015, however.