Lippo Karawaci Reinvents Malls as Lifestyle Destinations to Drive Growth
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JAKARTA, Investortrust.id — Despite the growing popularity of online shopping, malls remain powerful magnets for urban consumers. No longer just retail centers, they have become irreplaceable lifestyle, entertainment, and culinary destinations.
A new report by Cushman & Wakefield Indonesia showed that many malls in Greater Jakarta have not only expanded retail space but also invested in major renovations to refresh their concepts and meet the tastes of today’s visitors.
According to Arief N Rahardjo, Director of Strategic Consulting at Cushman & Wakefield Indonesia, retail supply in Greater Jakarta was expected to continue growing through the end of the year. This included projects such as Lippo Mall East Side, Summarecon Mall Bekasi Phase 2, and the expansion of Grand Metropolitan Mall Bekasi.
In the second quarter of 2025, Jakarta added 5,000 square meters of new retail space with the opening of Antasari Place, bringing cumulative supply in the capital to 4.8 million square meters. Surrounding cities such as Tangerang, Bogor, and Bekasi also contributed 96,900 square meters from three new malls, each drawing significant public attention.
Several established malls have also undergone transformation. Lippo Mall Nusantara, formerly Plaza Semanggi, and Epiwalk Mall in Kuningan demonstrated how renovation and new positioning could revive a shopping center’s appeal.
For PT Lippo Karawaci Tbk, or LPKR, this shift in strategy has long been anticipated. Through PT Lippo Malls Indonesia, the company has relied on consumer insights to prioritize tenants offering experiences beyond online shopping, including entertainment, recreation, and food and beverage outlets.
John Riady, CEO of Lippo Group Indonesia, said culinary variety was one of the most critical elements in mall transformation. LPKR introduced trendy cafés, casual dining spaces, and premium F&B clusters to increase both visitor numbers and dwell times. This was accompanied by reducing dependence on hypermarkets and supermarkets while expanding entertainment areas to attract broader customer segments.
The strategy has translated into improved financial performance. In the first half of 2025, LPKR recorded revenue of Rp 4.12 trillion ($252 million), EBITDA of Rp 627 billion, and net income of Rp 138 billion.
In property development, the company booked pre-sales of Rp 2.47 trillion during the first half, representing 40% of its full-year target. The performance was supported by continued demand for both affordable and premium landed homes, which contributed 67% of total pre-sales. This reflected strong interest from first-time buyers and end-users. Sales were also bolstered by the fourth phase launch of Park Serpong and the introduction of new premium products, Belmont Homes and Bentley Homes.
The lifestyle segment also delivered strong results in the first half of 2025, with stable revenue of Rp 659 billion. Gross profit rose 13% to Rp 493 billion, while EBITDA surged 41% year-on-year to Rp 213 billion, supported by higher rental income, sustained operational recovery, and cost optimization.
Operational metrics also improved. Average daily hotel room rates rose 5% year-on-year to Rp 636,000, while monthly mall traffic remained stable above 11 million visitors, underscoring the momentum of retail recovery.
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