t quarter of 2025. The centre is being developed in partnership with Genting, which is also Simon’s joint-venture partner for Johor Premium Outlets and Genting Highland Premium Outlets in Malaysia. It will have 150 shops plus eateries across approximately 28,000 square metres of leasable area. The location is next to National Route 1 in Kota Tangerang, only 25 kilometres west of downtown Jakarta and technically part of the Greater Jakarta metropolitan area.  Not much has been revealed about the project and obviously the leasing process will be ongoing, but given the track record and extensive brand relationships of the two joint-venture partners, it is unlikely to differ radically from the Malaysian blueprint. Indeed, the size of the centre is roughly the same as both Malaysia projects. Thus, we can expect the customary single level open-air racetrack configuration, attractively landscaped with water features, greenery and street furniture. The brand mix will include a lot of mid-end names (think Levi’s, Adidas, Anta, Cotton On) along with a potent representation of high-end brands (candidates such as Versace, Fendi, Bottega Veneta, Burberry). Why Jakarta? The concept of outlet retail isn’t new in Indonesia but Simon Genting’s entry will mark a distinct step up in quality and prestige. Moreover, outlet retail is in a perfect moment: consumers in Southeast Asia have increasing incomes and the higher brand aspirations that go with it, but at the same time this is tempered by cost-of-living pressures and a shift toward greater value-consciousness. Enter premium outlet centres, which offer a mix of international mid- and high-end brands discounted by around 65 per cent. Indonesia has now progressed into the World Bank’s ‘upper middle-income country’ category with a gross national income (GNI) per capita of US$4,580. Salary and income estimates for Jakarta are all over the place so it is difficult to get a handle on just how much disposable income is out there, but it is reasonable to say that salaried employees in the metro area can earn up to twice as much as those in the rest of the country and often more. Moreover, there are plenty of consumers: the population of the Jakarta metropolitan area exceeds 31 million now, and is the second-most populous urban area in Asia after Tokyo.  There are already a number of places in Jakarta where affluent shoppers can buy high-end brands. Some are attached to high-end hotels, such as Pacific Place Mall which is attached to the Ritz-Carlton Hotel and has a smattering of luxury names, including Louis Vuitton, Miu Miu and Rolex. Plaza Indonesia is attached to the Grand Hyatt, also downtown and this too houses a number of designer brands. But full-on premium outlet centres really change the game. Outlet competition is brewing Simon’s project will be a significant addition to the international luxury brand scene in Indonesia. However, it may be upstaged somewhat by another outlet centre that will already be on the ground at the other side of town: approximately 100 kilometres away to the east, and next to the same National Route 1 highway, The Grand Outlet – East Jakarta is due to open before the end of this year with 180 stores across 26,000 square metres of leasable area. This centre is a joint venture of Singapore’s Tuan Sing Holdings and Japan’s Mitsubishi Estate. Mitsubishi Estate has a lot of experience operating outlet centres: in fact it is Simon’s own joint-venture partner for the 10 premium outlets in Japan. With respect to brand names, the mall is likely to be weighted more toward mid-market brands than Simon’s, although the company has not issued much information about tenant signings and it remains to be seen who will be there on opening day. The Grand Outlet – East Jakarta will also be configured differently to the Simon project, being partly enclosed on two levels. However, it will have a similar emphasis on greenery, water features and natural habitat to give visitors a sense of retreat from the hustle and bustle of the big city. To drive the point home, the centre will consist of five connected nature-oriented nodes: Flower Park, Water Circle, Bamboo Garden, Forest Square and Green Hub. Curiously, many months in advance of its opening, in May, it already won an architectural award at the Asia Pacific Property Awards. Outlet fever is taking hold in developing Asia Modern factory outlet centres that are professionally managed have upscale brands, a strong service culture and pleasing store designs, but without the potential intimidation of luxury boutiques with their door security and one-on-one attention from staff. In developing Asia, where many people are unaccustomed to shopping for designer brands in a modern shopping centre, less attention in the store is sometimes better than more. Jakarta Premium Outlets will be Simon’s 19th outlet project in Asia. It already has outlet centres in Japan (10), Korea (5), Malaysia (2) and Thailand (1). Operating data for these centres is scarce, although the Japan projects averaged sales per square metre of US$7,840 pre-Covid, a figure that is probably still in the ballpark following ‘normalisation’. This figure compares very favourably with Simon’s total portfolio productivity of just over US$8,000 per square metre in the 12 months ending September 30. Simon is having a good year across its whole business, with net income of US$1.5 billion on revenue of US$4.1 billion in the first nine months of the year, portfolio occupancy once again up above 95 per cent and base minimum rent up 2.9 per cent compared to the same period a year ago.  But with the US at saturation point for malls and probably outlet centres as well, international development where there are growing incomes and a lot of white space still in the market, will be high on the list of future priorities.