Jakarta is a land of malls

Since Indonesia became a target of foreign retailers, around 100 malls have sprung up around the capital. Meanwhile, traditional markets should be managed by the private sector. Now, I want you to go to a mall in any major city in Indonesia. Who would believe that this nation is in the middle of an economic crisis? Just take a look at the growth of modern and sparkling shopping centers, especially in Jakarta city or suburban living area, the capital known as ''the window on Indonesia." Unfortunately, in global terms, Indonesia is still a poor nation with a per capita income of US$1,300. According to a study by the International financial institute UBS, released in August, we are at the bottom of the list of the 70 countries surveyed in terms of purchasing power. If that is the case, why are malls growing like mushrooms in the rainy season? The answer could well lie with the lifestyle of the majority of Indonesia (Jakarta) people who are consumptive, but who do not want to be seen as ''extravagant.'' As the world's fourth most populous nation, the market here is very tempting in my perspective. Another factor is the glaring disparity in incomes. According to a survey conducted by Merrill Lynch, one third of the rich people in Singapore come from Indonesia! Malls like those in Singapore's Orchard Road are full of shoppers from Indonesia. So the point is the retail giants thought, if that is the case, why not open luxury malls in Jakarta to cater for the rich people's desire to shop? One important concern is how the growth of modern shopping centers does not wipe the small retailers and traditionals markets. The number of modern retailers today has reached three times more than traditional retailers - a reversal of figures since 1985. Therefore, the government needs to be more resolute. With almost 13 million traders dependent for their livelihoods on more than 13,000 traditional markets, mishandling the situation could lead to social chaos in my opinion. One important solution solution would be to require modern retailers to participate in the development of and build mutually beneficial synergies with small and medium traders, cooperatives and traditional markets. That's what I think. What do you think?