Indonesian Mall Developers Embrace Renovation and Rebranding

Strategic Shift in Retail Property Development

Indonesian shopping mall developers are changing their business strategy from developing new properties to renovating and rebranding existing malls. This shift is driven by the limited supply of new retail spaces and the need to maintain and improve occupancy rates amid changing consumer behavior.

Market Dynamics and Occupancy Rates

Colliers Indonesia's research for Q4 2025 reveals that the supply of new malls in Jakarta is relatively limited, with most new developments coming from the Bodetabek area. The average occupancy rate across existing malls stands at 75%. According to Ferry Salanto, Head of Research at Colliers Indonesia, mall owners in Jakarta are focusing on rejuvenating their assets through design updates, adjusting tenant mixes, and repositioning their properties to remain relevant to market needs.

Implications for the Retail Property Sector

This strategic shift highlights the evolving nature of the retail property sector in Indonesia. With limited new supply, developers are prioritizing the enhancement of existing properties to attract consumers. The focus on renovation and rebranding is expected to continue as developers aim to improve occupancy rates and maintain the competitiveness of their properties in a changing retail landscape.