Tuan Sing Holdings and Mitsubishi Estate (MEC) will be teaming up to develop an international luxury outlet mall in Karawang, Indonesia.
The development will be undertaken by a 50:50 joint venture company (JVC), PT Karawang Outlet Mall. The JVC will also serve as the operator of the mall.
The mall will be named The Grand Outlet – East Jakarta, and will be developed on a nine-hectare site at the cost of around $90 million.
Construction is slated to begin in 2Q2022, with the mall targeted to open in 4Q2023.
Upon its completion, the mall will have a leasable area of 26,000 sqm. It will comprise some 180 shops, as well as parking space for 1,000 cars and 180 motorcycles.
Envisioned to be a world-class shopping destination, The Grand Outlet – East Jakarta will feature international luxury brands, beauty salons and massage services, as well as dining outlets, all set in green urban spaces.
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Mitra Adiperkasa, a leading retailer and distributor in Indonesia, is one of the interested parties that is seeking to be a major tenant at the outlet mall.
Some of the brands under Mitra Adiperkasa include Starbucks, Apple, and Zara.
According to the joint statement released by Tuan Sing Holdings and Mitubishi Estate, the outlet mall is well-positioned to tap a growing consumer class.
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Indonesia is the largest economy in Southeast Asia with a gross domestic product (GDP) of around US$1.058 trillion ($1.44 trillion) in 2020, according to the World Bank. The retail sector contributed around 13% to the country’s GDP.
The median age in the country is said to be around 28.3 years, according to findings by Worldometer, with an estimated 90 million Indonesians joining the “consumer class”, according to McKinsey.
Karawang is said to be a fast-growing economic connecting the country’s capital city of Jakarta and its third-largest city, Bandung. Connectivity to the city is set to improve with the construction of Indonesia’s first high speed rail connecting Jakarta to Bandung. The rail is slated to be completed by the end of 2022 with Karawang station being one of the stops.
The outlet mall is also an hour’s drive from central Jakarta.
Shares in Tuan Sing closed 2 cents higher or 5.26% up at 40 cents on March 21.
