PLAZA INDONESIA
" A Class of Its Own "

The prominence and reputation of Plaza Indonesia are among its greatest assets. The prominence of Plaza Indonesia’s name is a sign of its enduring success, because reputation can rarely be won without true accomplishment.

Since its opening in 1990, Plaza Indonesia has maintained its reputation and position as Jakarta’s first-class shopping and lifestyle destination. After 17 years of operations, Plaza Indonesia remains strongly focused on its high-end market niche, and has established a solid reputation synonymous with fashion, lifestyle, sophistication and quality. Plaza Indonesia is distinguished from its competitors by the exclusivity of its prime retailers, the superior quality of its construction, its up-market customer profile, and its prime location in the center of Jakarta’s business district.

Plaza Indonesia stands on a land site of 38,050 square meters at the junction of Jalan M. H. Thamrin and Jalan Kebon Kacang Raya, in the heart of Jakarta’s central business district. The Shopping Center contains 62,747 square meters of gross building area, with 4 levels of retail space, 1 level of office space, and 2½ levels of underground parking. With a total lettable area of 41,536 square meters, Plaza Indonesia has more than 250 upscale retailers, providing up-market consumers a first-rate and world-class shopping experience.

Plaza Indonesia is linked to the Grand Hyatt Jakarta Hotel and eX (Plaza Indonesia Entertainment X’nter), and the strong commercial synergy with the Hotel and Entertainment Center is one of its strong competitive advantage.

Plaza Indonesia takes pride in having the largest showcase of flagship boutiques of top international luxury brands. The Shopping Center also has the finest selection of international fashion labels, a wide range of upscale restaurants offering the best local and international cuisine, and a variety of high-end lifestyle concepts and consumer services.

Plaza Indonesia will expand and enhance its operations with the Extension Project, which will provide a retail expansion of Plaza Indonesia with around 25,000 square meters of additional lettable area. The Extension Project resumed construction in August 2006 and the Plaza Indonesia retail extension is projected to open in December
2008.

Despite the challenges and tight competition in the market in 2007, Plaza Indonesia achieved an average occupancy rate of 83.3%, from 96.2% in 2006. This significant drop in occupancy rate is mainly due to the conversion of the ex Department Store space of 9,402 square meters into prime retail space and the fit-out periods of the new tenants, which accounted a temporary vacancy of 22.6% of the shopping center’s lettable area, resulting a Total Revenue of Rp 181.8 billion, a decrease from Rp 206.2 billion in 2006. The year generated a Gross Operating Profit of Rp 148.4 billion, from Rp 178.3 billion in 2006, due to lower Total Revenue and increase in operational costs. However, the average rental rate closed at US$ 46.46, an increase from US$ 43.86 in the previous year.

Nevertheless, in 2007, Plaza Indonesia focused on further strengthening its core value and competitive advantage through further improvement, dynamism and innovations. The year’s rejuvenation program started with the closing of Sogo Department Store in Plaza Indonesia on March 1, 2007, after 17 years of tenancy as the mall’s anchor tenant. The decision not to renew Sogo’s lease was made in 2006, based on a mutual agreement with PT Mitra Adiperkasa Tbk., the holding company of Sogo Department Store, and is part of Plaza Indonesia’s long-term strategy to further strengthen its upscale positioning and provide more shopping and lifestyle choices for the high-end market segment.

In September 2007, Plaza Indonesia unveiled the new retail area, previously occupied by Sogo Department Store. This strategic transformation of the Department Store space into around 28 prime retail stores solidified Plaza Indonesia’s high-end positioning, defined its commitment to deliver a world-class shopping experience, and launched its modern and elegant new look. This new retail area is now occupied by international brands such as Hugo Boss, Maxmara, Chloe, Emporio Armani, Glow Living Beauty, several high-end multi-brand concepts, prominent Indonesian designers, up-market lingerie shops, and a variety of F & B outlets, beauty and hair salons.

In 2007, Plaza Indonesia continued its major renovation program to enhance the appearance and facilities of the complex, and at the same time, integrate the interior design of the existing mall and the retail extension. This renovation project started in 2006 and is projected to be completed in 2008.

Lamoda, Plaza Indonesia’s iconic restaurant in the atrium unveiled a new contemporary, sophisticated look in September, re-enforcing Plaza Indonesia’s commitment to deliver a world-class and impeccable ambiance for its upscale customers. During the year, Plaza Indonesia also started the major renovation of the common corridors, which includes new flooring, ceiling, lighting and column treatments. The south entrance was significantly enlarged and refurbished, the driveway expanded, offering a luxurious welcome to shoppers. The west entrance hall was also renovated. Toilets, praying rooms, baby changing and feeding rooms, were also completely renovated and upgraded, providing 5-star customer facilities. New escalators were installed from Level 1 to Level 2 in the west area, to enhance customer convenience and traffic flow. Furthermore, tenants’ facilities were upgraded, with new store staff changing rooms and toilets.

Plaza Indonesia maintains its leading position in the industry by constant improvement, dynamism and innovations. Every year, the tenant mix is updated with current trends and market demands.

In 2007, marketing efforts were focused in further improving the zoning and merchandising mix, securing more flagship stores of major international brands and developing new concepts to improve synergy among retailers. In 2007, 31 new stores opened including the first Indonesian retail outlets of prestigious international brands such as Marc Jacobs, Chloe, Davidoff, Emporio Armani, Joseph Abboud, Rebecca Taylor, Club Monaco, Make-Up Store, Camper, Fiorucci, and many others. The majority of these new up-market boutiques are exclusive to Plaza Indonesia, strengthening the Shopping Center’s position as Jakarta’s leading upscale retail center.

Furthermore, new F & B outlets were also launched, such as Pepper Lunch, Miittem, Pure and Krispy Kreme, enhancing the dining selections available in the mall. Several store expansions were also undertaken during the year, including Hugo Boss, Time Place and Club Solitaire. To further refine the shopping center’s ambiance, 18 store renovations were undertaken during the year.

As a true pioneer, Plaza Indonesia’s constant effort to improve and re-invent itself is part of its commitment to deliver an exceptional, world-class shopping experience, and provide the up-market consumers the best choice and selection in a cozy, elegant, entertaining and impeccable environment.

At Plaza Indonesia, customer care and service come first. Security and safety are always top priorities. Strongly committed to deliver the best customer care, Plaza Indonesia’s operational team maintains the superior level of its customer service through staff trainings and regular checks of guest facilities.

Plaza Indonesia considers its tenants as its important business partners, and provides commercial support to enhance the business of its retailers. In addition to the tenant
business incentive program and strong marketing activities, Plaza Indonesia also organized several business seminars for its tenants, to help boost the retailers’ business.

After 17 years of stellar performance, Plaza Indonesia is confident that its solid track record will endure, by delivering a world-class shopping experience and the finest facilities and services. With its established up-market positioning, exclusive trade mix, 5-star customer facilities and services and a solid customer base of loyal upscale shoppers, Plaza Indonesia looks forward to more growth in the future, through its constant effort to improve, innovate and excel.