Andreas D. Arditya, Jakarta – Jakarta Governor Fauzi Bowo says he is planning to stop issuing permits for new shopping malls and commercial centers with footprints bigger than 5,000 square meters for the next year.

Fauzi said Wednesday that he would sign a decree on the moratorium soon, adding that the decree would be valid until late next year.

"I've received a lot of input and suggestions saying that permit issuance for malls or trade centers of more than 5,000 meters needs to be evaluated," the governor said.

"Until an evaluation has been completed, the city administration will not issue new permits for malls," he said, adding that applications for such permits that had already been submitted would still be approved. Fauzi said that mainly malls and commercial centers had low visitor numbers.

Indonesian Shopping Center Association (APPBI) chairman Handaka Santosa said although there were some malls with low visitor numbers, many others were constantly packed, especially on weekends. "We are still seeing enthusiasm from city residents. The consumption rate is still high."

The administration announced earlier that Jakarta's average per capita GDP was around US$10,000 (Rp 85.47 million), and that the city was expecting to see an economic growth rate of 7 percent, following last year's 6.51 percent growth.

The private sector contributes 75 percent of the city's economic growth, and the rest is contributed by the public sector. "Like the administration said, the city recorded a 6.74 percent economic growth in the first semester of 2011. We are seeing a high purchasing power here," Handaka said.

According to the APPBI, there are currently a total 68 malls and trade centers across the city. "Looking at the economic figures, I believe the city is still able to have between 5 and 10 percent more malls," Handaka said.

Rapid development, including a construction boom in the property and industry sectors, in the city has been blamed for an alarming rate of land subsidence and the shrinking number of parks and green spaces over the past decades.

Indonesian Real Estate Developers Association's (REI) Jakarta chairman, Rudy Margono, said currently property businesses were rushing to get their construction permit issued by the government before the City Council delivers the new Spatial Planning Bylaw.