Following the Jakarta administration’s moratorium on shopping mall construction, property developers are eyeing several fast-growing cities outside the capital for business expansion. Agung Podomoro Land (APL), for example, is preparing Rp 5 trillion (US$422 million) in capital expenditure (capex) mostly to finance
Following the Jakarta administration's moratorium on shopping mall construction, property developers are eyeing several fast-growing cities outside the capital for business expansion.
Agung Podomoro Land (APL), for example, is preparing Rp 5 trillion (US$422 million) in capital expenditure (capex) mostly to finance its superblock projects in second-tier cities.
The publicly-listed developer has several projects in the offing that include Plaza Balikpapan in East Kalimantan and superblock Podomoro City Deli Medan in North Sumatra.
APL president director Indra Wijaya said the company was committed to expanding outside Jakarta even before the moratorium was announced by former Jakarta governor Fauzi Bowo in 2011. The administration's policy only further proves the necessity to explore other fast-growing cities.
“We already run about seven malls in Jakarta, and I think that's enough considering the capital is becoming more condensed. We are now looking to expand in second-tier cities, which actually offer more potential with higher economic growth comparing to Jakarta,” he said.
Indra added that the APL, which developed the Podomoro City superblock with its Central Park shopping mall in Tanjung Duren, West Jakarta, was also looking to develop another superblock in Makassar, South Sulawesi.
He refused to give further details of the investment plan, simply adding that construction on the Makassar project would start early next year at the latest.
Inactive Jakarta Governor Joko “Jokowi” Widodo, who is now running for president, decided late last year to enforce the moratorium in a bid to ease traffic in the capital. Jakarta currently has more than 170 malls.