Asset quality drives widening gap between Jakarta malls

Jakarta's retail recovery is becoming increasingly uneven.

Jakarta's retail recovery is becoming increasingly polarised, with stronger shopping centres continuing to improve occupancy while older and less competitive malls struggle to attract tenants and shoppers, according to Colliers.

In its Q2 2026 retail market report, Colliers said overall occupancy continued to improve during the quarter, but performance differed significantly across retail formats. Prime regional malls and well-managed mixed-use developments maintained relatively high occupancy, supported by resilient consumer spending and retailer demand, while secondary centres experienced slower leasing activity.

Colliers said retailers are becoming more selective, concentrating expansion in malls that deliver stronger customer traffic and higher sales productivity rather than simply increasing store numbers.

The consultancy added that vacancy is increasingly a reflection of asset competitiveness and management quality rather than an oversupply of retail space. Shopping centres that regularly refresh tenant mixes, upgrade facilities and strengthen experiential offerings are maintaining healthier occupancy levels, while slower-to-adapt assets continue to face higher vacancy.

Looking ahead, Colliers expects occupancy to improve gradually but unevenly, with the strongest performance coming from malls that successfully reposition themselves as integrated lifestyle destinations through tenant curation, experiential retail and community-focused programming.