Greater Jakarta to see around 115,000sqm of new retail supply next year
The incoming supply could intensify competition as consumers become more value-conscious, potentially widening the occupancy gap between resilient premium malls and lower-tier centres.
Savills expects Greater Jakarta to receive around 115,000 square metres of new retail supply by 2027, largely concentrated in Tangerang.
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Premium malls are expected to remain relatively resilient.
Jakarta's retail market continued to expand in the first quarter of 2026 with the completion of Pondok Indah Mall 5, adding around 10,000 square metres of retail space and increasing the city's total retail stock to 3.51 million square metres, according to Savills.
Savills said the open-air retail concept, centred on food and beverage and community experiences, reflects developers' growing preference for lifestyle-focused retail formats.
Retail occupancy eased by 0.3 percentage points quarter-on-quarter to 86.6%, mainly due to selective store closures and tenant relocations. However, demand remained resilient, supported by the arrival of international brands including Hikiniku to Come, The Matcha Tokyo, Encik Tan, Tempura Yamaya, Yonny, Hollister and the return of TOD's, while existing retailers such as Watsons, Mr.DIY, OhSome!, Frank & co. and The Palace continued to expand.
Savills said resilient consumer spending on affordable discretionary purchases continues to support leasing demand, while the expected return of KKV highlights the appeal of accessible lifestyle retail concepts.
Looking ahead, Savills expects around 115,000 square metres of new retail supply by 2027, largely in Tangerang. Premium malls are forecast to remain relatively resilient, while mid- and lower-tier centres may face declining occupancy as inflation and weaker purchasing power encourage more value-conscious consumer behaviour.