APPBI said 20% of tenants had closed their businesses due to the impact of the Covid-19 pandemic

ILLUSTRATION. Shopping center. KONTAN / Baihaki / 13/10/2020

Reporter: Amalia Nur Fitri | Editor: Handoyo.

KONTAN.CO.ID – JAKARTA. The Indonesian Shopping Center Management Association (APPBI) said that during this pandemic, it recorded history in sales in shopping centers. Not a good note was obtained, his party reaped a decrease in turnover due to the temporary closure for more than 3 months from March to mid-June.

“Many are not able to continue operating costs so that they are permanently closed. And this empty part is not filled by new retailers who rent a place. So the occupancy rate of shopping centers in 2020 is only around 70% to 80%, normally 80% to 90%. “said Chairman of APPBI, Alphonzus Widjaja in a discussion on The 2nd MarkPlus Industry Roundtable: Retail Industry Perspective which took place virtually, Friday (16/10).

He noted, until now, tenants who have closed their business are around 10% to 20%. Many tenants also cancel or postpone renting because the mall is still quiet.

Also Read: The Covid-19 pandemic accelerates the digital innovation of Matahari Putra Prima (MPPA)

The level of sales that occurred in shopping centers is only around 30% until now. “The government must move quickly to raise purchasing power and help Shopping Centers to survive while purchasing power has not yet recovered. There is not much that can be done by Shopping Centers other than continuing to strive to increase public confidence in Shopping Centers that people can shop safely and healthily,” he continued. Alphonzus.

He said that in order to survive, Shopping Centers must continue to show seriousness and commitment in enforcing and implementing the Health Protocol which is strict, disciplined and consistent.

Not only that, products can be made in smaller packages and the use of cheaper alternative raw materials to make them more affordable to people who are experiencing a sharp decline in purchasing power.

Also Read: To increase the competitiveness of MSMEs, the Ministry of Trade collaborates with Bank BNI

Alphonzus also said that currently the retail sector was also the worst affected even though there were still small sales. “Currently, the worst affected sector is the sector fashion or apparel. For the category of everyday clothing, there are still sales, although not much. At this time, concerns were born from the retailers and shopping center managers, “he concluded.