JAKARTA RETAIL REPORT

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 4Q 2009

O V E R VIE W

Le as i n g A c t i vi t i es SUPPLY, DEMAND, AND OCCUPANCY 2004 – 2009

Leasing activities of Jakarta retail market still showed a
positive growth during 2009, although in the slower pace 3,500,000 100%

compared to the last year’s figure. 3,000,000

Cummulative Supply and Demand (sm)

80%
th
The take-up of retail space during the 4 quarter 2009 2,500,000

Occupancy Rate
was mostly contributed by the occupation of tenants in 60%
2,000,000
the newly completed centers. Meanwhile, in the more
established centers, the occupation rate was relatively 1,500,000
40%
stable.
1,000,000
20%
Anchor/big tenants which opened new branches during 4th 500,000
quarter 2009 included Best Denki, Gramedia, and Central
- 0%
World by Fun World in Central Park, Farmers Market in
2004 2005 2006 2007 2008 2009
fX, Muji in Plaza Indonesia extension, Electronic Solution Cumulative Supply Cumulative Demand Occupancy Rate
in eX, Boutique KTV in Plaza Senayan Arcadia, and Happy
World in Graha Cijantung.
MARKET HIGHLIGHTS IN 4Q 2009
F&B retailers continued to dominate the leasing
Description Total
transactions. Some F&B retailers which opened additional
outlets were Urban Food Park by Urban Kitchen, May Overall Occupancy 75.9%
Star, Penang Bistro, Sushi Tei in Central Park, Food - Lease 82.2%
Kulture by Urban Kitchen in Plaza Indonesia extension, - Strata-Title 63.2%
For Us Café in Citiwalk Sudirman, Bakerzin in Mal Kelapa Vacant Space 817,300 sq m
Gading 2, De Cost in JaCC (Thamrin City), and Bakmie Net Take-Up 4Q09 (Q-O-Q) 46,200 sq m
GM in Plaza Bintaro Jaya.
Net Take-Up 2009 (Y-O-Y) 197,100 sq.m
th
Other recognized activities during the 4 quarter 2009 Cumulative Supply 3,396,800 sq m
included the launching of Business Lounge in Senayan City Future Supply (2010)* 203,000 sq m
and the introduction of new concept of Carrefour Market
in Plaza Tendean.
PRIME RETAIL BASE RENTS IN 4Q 2009
D em an d Location Rents
% change from 6 mth
Occupation of tenants in the newly completed centers local currency outlook
IDR € US$
during the 4th quarter 2009 has brought the average /sq.m /sq.m /sq.feet QoQ YoY
occupancy rate of Jakarta retail market to increase by /mnth /year /year
0.9% QoQ. However, on YoY comparison, the average Overall Jakarta 587,300 507.4 69.5 -3.5% -11.8%

occupancy rate decreased by 1.4%. As of end 2009, the - Primary location 804,000 694.6 95.1 -4.7% -12.0%

average occupancy rate of Jakarta retail market was - Secondary location 488,700 422.2 57.8 -2.6% -4.3%

recorded at 75.9%, leaving approximately 817,300 sq.m of Legend
vacant retail space. Market Rising  Market Stable
Market Falling 

The Jakarta retail supply growth of 10.3% which was not ECONOMIC INDICATORS
followed by the growth of demand which only grew by Latest Release Average
8.3% during 2009 was the main reason to the lower FY 2007 FY2008
occupancy rate in 2009 (75.9%) compared to 2008’s figure Real GDP Growth December-09 4.1 – 4.3% 6.3% 6.1%
(77.4%). Prices (CPI) December-09 2.9% 6.6% 11.1%
SBI Rate (1-mo) December-09 6.5% 8.3% 10.8%
By sub-sector, the occupancy rate of the existing rental
retail centers in Jakarta decreased by 2.4% from 2008’s Source: Central Statistics Bureau; Bank Indonesia; Ministry of Finance, December 2009
figure to 82.2% and the strata-title centers saw a decrease
of their overall occupancy by 1.5% YoY to 63.2% at the
end of 2009.
JAKARTA RETAIL REPORT 4Q09 1
 JAKARTA RETAIL REPORT 4Q09

The net take-up of Jakarta retail space in 4Q 2009 was 46,200
sq.m. Meanwhile, the total net take-up in 2009 was recorded at
197,100 sq.m, which was slightly lower of 3.4% than the total
net take-up in 2008 of 204,000 sq.m.
Supply
There was only one new retail center completed during 4Q
2009, namely Pusat Grosir Senen Jaya, a strata-title retail center
in Central Jakarta.
The total cumulative supply of retail center in Jakarta as of
December 2009 was recorded at 3,396,800 sq.m, which
comprises 2,279,400 sq.m (67.1%) of retail center space for
lease and 1,117,400 sq.m (32.9%) of space in strata-title retail
centers.
North Jakarta contributed the largest portion of the supply at
736,200 sq.m (21.7%) followed by CBD Jakarta at 734,300 sq.m
(21.6%), West Jakarta at 606,800 sq.m (17.9%), and South
Jakarta at 566,100 sq.m (16.7%). Meanwhile, Central and East
Jakarta contributed some 409,700 sq.m (12.1%) and 343,600
sq.m (10.1%) of the total supply, respectively.
Through to the end of 2010, a further 203,000 sq.m of new
retail space is expected to enter the market. 83.3% of this
(169,100 sq.m) will be centers for lease and only 16.7% (33,900
sq.m) will be strata-title retail space. Reduction of supply is also
expected with the closing of Automall, which will cease
operation in end 2009.
concessionary exchange rates ranged between Rp.7,000
and Rp.9,000 per US$1.00.
OU T LOOK
Additional supply of Jakarta retail market in 2010 will be
dominated by supporting retail facilities within the mixed-
use developments, such as Grand Paragon, Epicentrum
Walk, supporting retail at Gardenia Boulevard, and The
Mansion at Kemang. Only one large scale one-stop retail
center will be completed in 2010, Gandaria Main Street,
and two strata-title retail centers, Tanah Abang Blok B and
Pusat Grosir Metro Tanah Abang (extension). Other
under-construction large-scale retail centers are scheduled
for completion from 2011 onwards. As such, the Jakarta
retail supply will experience slower growth rate in 2010 of
approximately 5.7% (compared to 10.7% in 2008 and 10.3%
in 2009).
In line with the projected improving economic condition in
2010, leasing activities are expected to be more active in
2010 compared to 2009, which was relatively slow as
retailers were more cautious during the period. Retailers
are expected to be more active in making pre-
commitments in the under-construction centers.
Occupation of tenants in new centers completed in 2009-
2010 is expected to bring the cumulative demand grow by
7.4%, with the projected net take-up of 190,000 sq.m in
2010. With the lower growth of supply, occupation level is
projected to slightly increase to 77.2% by the end of 2010.

Should these proposed new centers meet their completion
schedules, the total Jakarta retail supply will reach 3,589,800
sq.m by the end of 2010.
R en t al G r o w th
Due to more competition in the market and the weakening of
general buying power as the effect of the global economic crisis
in 2009, some retail centers offer more business incentives to
the tenants. The average effective Rupiah base rentals for
premium ground floor retail space in Jakarta therefore slightly
decrease during 2009 by 11.8%, compared to the 2008’s figure.
However, in US$ term, the strengthening of Rupiah by 16.2%
YoY caused the average base rental to increase by 2.5% as of
end 2009.
Base rental is expected to remain stable. Some business
incentives, in the forms of promotion, events, ‘free rental
rate’ during soft opening period, would be given to some
retailers, especially to ensure good occupancy rate of the
new centers on soft opening. Any increase in service
charge, however, will be mainly due to adjustment to the
expected increase of utility charges.
JAKARTA RETAIL SUPPLY BY DISTRICT IN 4Q 2009
Central
CBD 12.1%
21.6%

As of December 2009, the average base rental rate was North

recorded at Rp.587,300 per sq.m per month for specialty shop 21.7%
units at premium locations on the ground floor. Service charges
applied ranged between US$9.00 and US$14.50 per sq,m or West
Rp.70,000 and Rp.130,000 per sq.m per month. The 17.9%

East South
10.1% 16.7%

For further information, please
contact
Research & Advisory Department
PT. Cushman & Wakefield Indonesia
Indonesia Stock Exchange Building Tw.2, 15th fl.
Jakarta, Indonesia
+62 21 2550 9500
www.cushmanwakefield.com
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