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Slow Death of Jakarta's Brick-and-Mortar Stores

The Jakarta Globe
July 22, 2017 | 11:37 am
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A store is still open in Grand Serpong Mall on Thursday (20/07) The mall that once reached its peak in 2005 has been abandoned since the outbreak of online merchants and the construction of new malls located adjacent to each other(JG Photo/Yudha Baskoro)
A store is still open in Grand Serpong Mall on Thursday (20/07) The mall that once reached its peak in 2005 has been abandoned since the outbreak of online merchants and the construction of new malls located adjacent to each other(JG Photo/Yudha Baskoro)

A survey by the Association of Indonesian Internet Service Providers, or APJII, shows that more than half of Indonesia's 256.2 million people use the internet regularly and many of them use it to make purchases, for everything from books to pets, from "olshop," the local abbreviation for online shops.

Online sellers in Indonesia can be found on official platforms such as Tokopedia, Bukalapak and Blibli or semi-unofficially on social media platforms Instagram, Facebook and Twitter.

Though sending money using a secure third-party payment system like PayPal is still cumbersome if not impossible in the country, more Indonesian banks have started to work closely with online stores to provide easy and more convenient payment methods for their customers.

The downside? The slow-but-sure death of brick-and-mortar stores. The old adage used to say, "why stand, when you can sit?" Now Indonesians are likely to say, "why bother getting out of the house when I can just get everything I need online?"

Several malls and shopping centers in Jakarta are already struggling because they cannot compete with the ease and convenience of online shopping, and can no longer rely on walk-in customers since fewer people are coming to the stores.

Grand Serpong Mall in South Tangerang, Banten, is almost completely deserted. It had a brief busy period in 2005 but since then, merchants have been steadily leaving their shop spaces in the mall to open online stores instead. Its plight became worse when newer, bigger, more flashy malls opened nearby.

The mall's management is now thinking of converting the building into an office block.

Blok M Mall, a once busy shopping strip located under the famous Blok M bus terminal that has stood since 1992, now also looks deserted.

Shutters have come down on the shops, and many that are still open offer their goods at cut-prices. The owner of a T-shirt store in Blok M, when asked by the Jakarta Globe about having to compete with online stores, said it is like suffering from a broken heart: bloody and painful but nobody can see the scars.

A store struggles to stay in business in a darkened alley in Grand Serpong Mall on Thursday (20/07). (JG Photo/Yudha Baskoro)

An abandoned floor in Grand Serpong Mall in South Tangerang, Banten, on Thursday. (JG Photo/Yudha Baskoro)

The escalators no longer operate at Grand Serpong Mall. (JG Photo/Yudha Baskoro)

Broken store signage at Grand Serpong Mall. (JG Photo/Yudha Baskoro)

A store space in Grand Serpong Mall that has already been converted into an office. (JG Photo/Yudha Baskoro)

Running an online business has the advantage that all can be done without having to move from one's chair and at a fraction of the cost of running a brick-and-mortar store. (JG Photo/Yudha Baskoro)

An abandoned mannequin in Grand Serpong Mall. (JG Photo/Yudha Baskoro)

An abandoned mall near Grand Serpong Mall. Several malls and shopping centers in Jakarta are affected. (JG Photo/Yudha Baskoro)

A store employee carries a bag of T-shirts in a half-deserted part of Blok M Mall on Friday. (JG Photo/Yudha Baskoro)

Sale signs at a T-shirt store in Blok M Mall. (JG Photo/Yudha Baskoro)

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