Retail Decline Trend in Jakarta Anticipated by Moratorium Mall

INDUSTRY.co.id - Jakarta - The phenomenon of declining sales of retail sector in Jakarta area has been successfully anticipated by moratorium mall policy which has been issued by DKI Jakarta Provincial Government some years before.

"As a result of the moratorium policy of Jakarta's shopping mall, the supply side was successfully controlled during the current downturn," said Senior Associate Director of Research at Colliers International Ferry Salanto, in a release of property exposure in Jakarta on Thursday (14/12/2017)

According to him, based on data collected it, the occupancy rate or the filling shopping center or retail market is currently recorded at the lowest level for at least the last 10 years.

In addition, he said, the retail market is currently in a period of challenges, among others, due to decreased purchasing power and the presence of a number of leading outlets in a number of closed malls.

As proclaimed, the government needs to pay attention to the policy in order to increase people's purchasing power because it is considered very important as an effort to melesatkan retail performance which is currently considered to be sluggish.

"Currently there is a decline in purchasing power, with the need to increase while 'income' (income) does not increase as fast as the cost of needs," said Ferry Salanto as well.

According to Ferry, based on a number of studies such as from Nielsen, retail consumers are now starting to make savings by lowering costs for tertiary or secondary needs.

Previously, the Minister of Trade Enggartiasto Lukita assessed the closure of two outlets Matahari Department Store in Pasaraya Blok M and Pasaraya Manggarai not because of decreased purchasing power, but the efficiency of the company.

After attending the event Synchronization of Consumer Protection and Commerce Policy Year 2017, Minister of Trade explained that although both outlets are closed, retail condition is still good because Matahari Department Store performance from year to year shows an increase of income.

"Not for the purchasing power, please see, the year on year (yoy), the income of each company is up or down, nothing goes down, so there is no similar purchasing power," said Enggartiasto in Jakarta on Monday (9/9).

According to him, the closing of Matahari outlets did not make the retail condition worse, because it must be seen from the annual book keeping showing the increase of income and net profit of y-o-y.

He acknowledged that shopping centers in some locations are quiet because there is a shift in public interest focusing on Sudirman, SCBD to Thamrin for major shopping locations.