International brands expand into Jakarta’s retail market across food & beverage, fashion and sportswear

• Demand increased compared to previous quarter, led by F&B operators, which remained the dominant sector, followed by sportswear segments across Jakarta’s retail market.
• The matcha trend dominated F&B expansion with new openings, such as MatchaMan and Chontea, while sport/lifestyle trends attracted retailers including Wilson’s, which opened its first store in Indonesia.

No new prime malls opened during Q3 2025, keeping prime retail supply steady in Jakarta’s market

• No new prime shopping centres opened in the quarter, while vacancy rates stayed steady around 4%. With good locations becoming increasingly limited, retailers chose alternative spaces to maintain market visibility.
• With limited new malls expected, expanding F&B brands chose high-traffic areas with outdoor spaces. Emerging sports events, such as padel, also utilised mall’s vacant outdoor areas for activities.

Rents show a slight increase compared to previous quarter

• Mall rents increased slightly by around 0.5%, with prime shopping centres maintaining high occupancy and foot traffic likely to continue implementing gradual upward rent adjustments.
• Typically, international brands entered Indonesia’s market by partnering with major retail groups, leveraging their significant negotiating power to secure favourable lease terms and achieve more competitive rents in prime locations.

Outlook: Prime malls see steady demand despite limited supply as developers shift toward innovative concepts

• Prime shopping mall openings will remain limited as developers focus on creating retail developments that adapt to evolving market trends. Constrained availability of prime spaces drove business expansion toward Greater Jakarta and secondary cities.
• Limited new supply creating competitive conditions may provide existing mall operators with opportunities to implement rent adjustments while maintaining stable occupancy levels.