Following the relaxation of social-distancing measures during the transitional period with 50% capacity limits and strict health protocols for market and shopping centers, the Jakarta retail market has witnessed a gradual recovery with improved foot traffic during the second half of 2020. However, the purchasing power remained weak and consumers curb spending on non-staple goods by shifting focus on securing basic needs and essential items. Despite the mobility restrictions, the Jakarta retail market added four new retail mall projects during the second half of 2020, bringing the cumulative total stock of Leased Mall space to 3,116,715 square meters and the cumulative total stock of Strata-title Mall space remained unchanged at 1,651,199 square meters.

With the lockdown forcing several new projects to temporarily delay construction and openings in 2020, the projected pipeline of new retail supply in Jakarta with completion between 2021 and 2022 is expected to be 521,875 square meters, coming from 16 retail cen ters. Projected new Leased Malls are located within mixed-use developments while new Strata-Title Malls are located in freestanding premises.

The occupancy rate of Leased Mall retail space was 85.5%, representing a nominal decrease of 4.8% (yoy), while the occupancy rate of Strata-title Mall retail space was 78.1%, representing a nominal decrease of 2.4% (yoy). In the second half of 2020, the occupancy of Premium Grade-A mall decreased in real terms by 2.3% to 91.5%. The occupancy of Grade-A also decreased in real terms by 5.1% (yoy). Notably, several omnichannel retailers have expanded their offline footprint in the second half of 2020, including Sephora at Grand Indonesia, Sociolla opening six new stores in Jakarta and POMELO, a Thailand based fashion tech startup, at Central Park.