As the city of services and commerce, dozens of malls are celebrating the revival of the economy through the 2023 Jakarta Great Sale Festival. During the two-month, the malls are offering discounts to the public.
By
ERIKA KURNIA
·4 minutes read
KOMPAS/PRIYOMBODO
A sign at a clothing outlet that enlivened the 2023 Jakarta Great Sale Festival in a shopping center in South Jakarta, Saturday (27/5/2023).
Felly (40) looked enthusiastic about shopping at Mal Ciputra, which offered hefty discounts on Friday (26/5/2023). She bought two pairs of shoes for her child at a 50-percent discount at the shopping outlet, which is located in West Jakarta.
"I got used to buying impulsively, but I'm lucky because the discount is quite good," said the resident, who lives in Pademangan, North Jakarta.
Elsewhere, many shopping outlets selling fashion products and accessories as well as restaurants were offering attractive promotions, with discounts being offered of up to 70 percent. However, not many visitors realized the discount frenzy was part of the 2023 Jakarta Great Sale Festival (FJGS).
Coinciding with Jakarta's 496th anniversary, this year’s annual event will run from 11 May to 21 July.
Visitors can find discount offers at thousands of shopping vendors under the Indonesian Retailer and Tenant Association (Hippindo), scattered in 94 malls under the Indonesian Shopping Center Association (APPBI). Apart from malls’ vendors, those in shophouses, train stations, airports, MRT stops, Transjakarta stops and other commercial areas joined the event. Authorities estimate total transactions of Rp 6.5 trillion (US$433 million).
"This event is being held as an effort to help uplift the national economy, increase people's purchasing power and strengthen Jakarta's image as a shopping destination," Jakarta acting governor Heru Budi Hartono said during the opening ceremony at the Laguna Atrium Central Park Mall, West Jakarta, on 21 May.
Being part of economic recovery efforts from the slump due to the COVID-19 pandemic, the event has largely gained support from business retailers.
"We support the FJGS program for these two months," Senayan City PR manager Ratna Irina said.
This event is being held as an effort to help uplift the national economy.
Ciputra Mall general manager Ferry Irianto also applauded the event, which this year marks its comeback after a three-year hiatus due to the pandemic. Being held for a longer duration than in previous years, the event is expected to be more effective in leveraging money circulation.
"Our hope is the community will welcome the FJGS, with its affordability, to meet their needs post-Idul Fitri, with discounts of up to 70 percent," he said. The downside of this year’s FJGS is banners or posters are hardly visible, which would readily capture visitors’ attention about promo sales at shopping vendors despite the attached sticker marking their participation in the event.
KOMPAS/ERIKA KURNIA
One of the clothing outlets at Senayan City Mall, Central Jakarta, offering discount promos, Thursday (25/5/2023).
Hippindo chairman Budihardjo Iduansjah conceded to lack of prepared coordination due to the fact the event had been abruptly brought forward from the initially planned starting date in June. However, he said, retailers came up enthusiastically to work with the Jakarta administration after three years of absence.
"Every day more and more brand tenants registered as participants. There are now dozens of diverse brands participating in the event. They are not only fashion and restaurants, but also [beauty] salons and supermarkets," he said.
Increased public spending during the event is expected to contribute directly to of Jakarta's GDP from household consumption, which constitutes as much as 58 percent. It appears to be among the city’s GDP big contributors along with the manufacturing and trade industries (kompas.id, 7/6/2022).
Household consumption expenditure in Jakarta was reported to show a positive trend in the first quarter of 2023, with an increase of 4.18 percent from the same period last year. Based on data at Jakarta Statistics Agency, people increased their consumption on restaurants, hotels, transportation and communication.
Promotional events
Shopping centers look to big discounts as a means to raise sales, which subsequently leverage money circulation. Apart from that, they organize various thematic events to lure people in shopping arcade after the COVID-19 pandemic. "If there is an [promotional] event, A daily visit can be up to 5-10 percent," Ferry said.
A promotional event that potentially largely attract crowds will cause economic spillover to other commercial industries, such as hotels or inns. Maulana Yusran, secretary-general of the Indonesian Hotel and Restaurant Association (PHRI), said hoteliers in Jakarta were looking forward to such an event organized by other industry sectors.
"Take, as an example, a Coldplay concert. An international sports event, or creative-industry activities, can trigger growth in the tourism sector, with hotel occupancy and restaurant guests expected to rise," he said.
We are now trying to make Jakarta attractive for people from regions [outside Jakarta) to relish the city with good transportation.
The average occupancy rate for hotels in Jakarta was around 53.6 percent throughout 2022. The figure was below the pre-pandemic average, which was 60 percent.
"We are now trying to make Jakarta attractive for people from regions [outside Jakarta) to relish the city with good transportation. An interesting atmosphere created by attractive [promotional) events is necessary to offset this decline in occupancy," he said.
For urbanites and business actors, FJGS is like an oasis for economic recovery. Now, it is time for the residents to revel in discount frenzy.
