Retail Sector Sees Significant Recovery in Jakarta Area Amid Easing COVID-19 Restrictions

mall and shopping Center.

The post-pandemic recovery is progressing well, with various sectors showing signs of improvement, one of which is the retail sector. The level of visits to shopping centers or malls in the Jabodetabek (Greater Jakarta) area has increased by more than 100 percent throughout the Ramadan of 2023.

According to Alphonzus Widjaja, the Chairman of the Association of Shopping Center Management (APPBI), the average level of visits to shopping centers during Ramadan and Eid al-Fitr 2023 can reach more than 100 percent compared to before the pandemic or at least the same as before the pandemic. “There are many shopping centers that have achieved a level of visits of 100 percent or even more than before the pandemic,” said Alphonzus, as quoted on Sunday (9/4/2023).

He explained that the average level of visits to shopping centers in 2020 was around 50 percent and increased slightly to around 60 percent in 2021. In 2022, the retail sector showed further signs of recovery with a visit rate of 90 percent. This condition was also supported by the lifting of the PPKM rule by the government at the end of 2022.

“This year is the first Ramadan and Eid al-Fitr without restrictions, after three consecutive years that were always accompanied by various restrictions due to the Covid-19 pandemic,” he said.

He projected that the peak of visits to shopping centers during Ramadan will occur 1-2 weeks before Eid al-Fitr 2023. Therefore, many mall managers are now attracting public attention with various activities.

“Shopping centers have started to hold various events and activities as well as various shopping promotions which were previously prohibited for almost three years due to various restrictions imposed by the government,” he explained.

Furthermore, he explained that tenants entering before Ramadan are becoming more diverse in line with consumer trends. Generally, during Ramadan, the community will shop for non-food and beverage products. “During the holidays or Eid al-Fitr, it will switch to food & beverage (F&B) categories and entertainment,” he said.

The Ramadan 2023 period is a blessing for both tenants and mall managers, as in the first quarter of this year or the period of January-March 2023, the occupancy level of malls in Jabodetabek was still below 70 percent.

Based on data from Colliers Indonesia, the average occupancy rate of malls in Jakarta was still at 69 percent in the first quarter. Meanwhile, the highest occupancy was in premium malls at 84.5 percent, followed by middle-upper malls at 79.3 percent.

In addition, the F&B, fashion sports brand & footwear, entertainment & playground, and home improvement sectors are expected to continue to attract consumers to visit malls.

Meanwhile, supermarkets and department stores are continuing to improve and offer fresh new concepts to attract more customers.