JAKARTA: The Government of DKI Jakarta halted license for new giant malls in the city up to 2012, as the existing ones have potentially led to traffic and environmental problems.
Totally, the capital city contains 132 malls and 432 shopping centers, each on more than 5,000 squaremeter (sqm) space including department store, hypermarket, wholesale center, shop, and traditional market.
Governor of DKI Jakarta Fauzi Bowo confirmed that the policy is based on Jakartan developers’ recommendation.
“It’s not our one-sided policy but considering inputs from developers, urging the evaluation of license for new mall and shopping center as there are many unoccupied units in the existing ones,” he said yesterday.
Today, 563 units of mall and shopping center operated mostly in Central and South Jakarta. Thus, new license needs to be limited temporarily, The Head of Jakarta Planology Agency at Jakarta Provincial Government Wiriyatmoko said.
The Agency has obligated its officials to be more selective and to reject any application for shopping center, shop, and mall with land area of more than 5,000 sqm.
“Provincial Government has published Instruction of DKI Jakarta Governor on moratorium of license issuance for such mall and shopping center,” he said yesterday.
Wiriyatmoko, acting also as Daily Executive of Office Building Control and Supervision of DKI Jakarta, added the agency has a duty to socialize the governor instruction.
“Our agency has addressed an official letter to Chairman of Indonesia Real-Estate and Chairman of Indonesian Shopping Center Operators Association (APPBI) of DKI Jakarta to suspend the constructions of shopping center until the end of 2012,” he said.
On the other hand, the government will provide license for shopping center construction on less than 5,000 sqm area, as long as it is built on a strategic location which is considered not to burden the traffic and to disturb environment.
Chairman of APPBI DKI Jakarta Handaka Santosa informed that mall and shopping center in Jakarta still has potential to grow by 5%-10% of total units that has been already operated today.
Previously, Ferry Salanto, Research Division Manager at Colliers International said there are three units of mall and shopping center that will be completed this year, namely Kuningan City, Area 51, Green Tebet.
He mentioned total retail space supply in a period of January-March 2011 reached 3.93 million sqm following additional supply by 2,663 sqm. “Until the end of this year, there will be 89,000 sqm of shopping center space in Jakarta,” he said.
Jakarta Govt freezes license for new gigantic malls – Bisnis.com.
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