Jakarta retail rents edge higher as international brands expand

Prime shopping centre rents rose a modest 0.25% in Q2.

Jakarta's prime retail market remained resilient in the second quarter of 2026, with international fashion and food and beverage brands continuing to expand despite limited availability of prime shopping space, according to JLL.

Several international retailers opened their first Indonesian stores in Jakarta during the quarter. Golden Goose and COS entered the market through Jakarta locations, while ACE Hardware and KKV reopened stores after previous exits. JLL also noted continued consolidation in fast fashion, with replacement tenants taking over space vacated by other retailers.

No new prime shopping malls opened in Q2, helping the vacancy rate tighten slightly to 4.1%. JLL said strong demand in established shopping centres continued to support occupancy, while limited availability increased competition for quality retail space.

The prime mall development pipeline also remains constrained. The next major addition is expected to be the 56,000 sq m Kota Kasablanka Extension, which is scheduled for completion in 2029.

Prime shopping centre rents rose a modest 0.25% quarter-on-quarter in Q2. JLL noted that stable occupancy and sustained retailer demand continued to support gradual rental growth in established prime locations.

No retail investment transactions were recorded during the quarter. Nevertheless, international retailers continued to prioritise prime mall locations despite limited availability and broadly stable rental conditions.

JLL expects international fashion and F&B brands to continue entering and expanding in Jakarta through the rest of 2026. With no additional prime mall supply expected this year, competition for established locations is likely to remain strong and occupancy levels should stay stable.

Landlords are expected to maintain cautious rental adjustment strategies while monitoring tenant performance and broader market conditions.