Indonesia's Outlet Mall Boom: Mitsubishi Estate and Simon Property Compete

JAKARTA — Indonesia is experiencing a surge in outlet malls. Mitsubishi Estate launched The Grand Outlet in Karawang, east of Jakarta, on July 17. Simon Property Group plans to open one near Jakarta in 2025. Both companies have previously collaborated in Japan.

The Grand Outlet, a joint venture between Mitsubishi Estate and Singapore's Tuan Sing Holdings, cost about 7 billion yen. It spans 90,000 square meters, housing 120 shops, with plans to expand to 150. Brands include Coach, Nike, and Adidas. Prices are slightly lower than in Japan, despite higher import duties.

The mall mimics Japanese designs, with a maze-like layout and a large food court. It's a one- to two-hour drive from central Jakarta, aiming to keep visitors for three to four hours. Mitsubishi Estate also plans an outlet in Bali, set to open in early 2026.

Simon Property, through a joint venture with Malaysian Genting Group, will open an outlet in Tangerang, west of Jakarta, next year. The mall, covering 95,000 square meters, will house around 150 shops and cost $100 million.

Indonesia's middle-class growth, solid annual economic expansion at about 5%, and rising demand for luxury brands drive this trend. The country leads Southeast Asia in outlet mall development, with four expected by 2026.