Mall Transformation: LPKR’s Strategy to Attract Visitors and Drive Performance

Jakarta, August 25, 2025 — Despite the continued rise of online shopping, shopping malls remain a powerful “magnet” for urban communities. Beyond retail, malls have evolved into integrated lifestyle, entertainment, and culinary destinations that continue to play an irreplaceable role in city life.

A recent report by Cushman & Wakefield Indonesia highlights that many malls across Greater Jakarta (Jabodetabek) are not merely adding new retail space, but are actively undergoing renovations and refreshing their concepts to align with changing consumer preferences.

According to Arief N. Rahardjo, Director of Strategic Consulting at Cushman & Wakefield Indonesia, retail supply in Jabodetabek is projected to continue growing through year-end, driven by new developments 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 following the opening of Antasari Place, bringing the capital’s cumulative retail supply to 4.8 million square meters. Surrounding areas such as Tangerang, Bogor, and Bekasi also recorded strong momentum, with an additional 96,900 square meters from three newly opened malls that quickly attracted public interest.

Transformation is not limited to new developments. Established malls such as Lippo Mall Nusantara (formerly Plaza Semanggi) and Epiwalk Mall Kuningan demonstrate how renovation and concept upgrades can successfully revitalize shopping centers and restore their appeal.

For PT Lippo Karawaci Tbk (LPKR), these shifts come as no surprise. Through PT Lippo Malls Indonesia, LPKR has long anticipated changes in consumer behavior. Leveraging consumer insights, the Company prioritizes tenants that deliver differentiated experiences—ranging from entertainment and recreation to culinary offerings—creating added value beyond conventional retail or online shopping.

Group CEO of Lippo Indonesia, John Riady, noted that culinary diversity has become a key element in the transformation of shopping centers. Accordingly, LPKR has curated a combination of trendy cafés, casual dining concepts, and premium F&B clusters to increase footfall and dwell time, while enriching the overall visitor experience. This strategy is complemented by reducing reliance on hypermarkets and supermarkets and expanding entertainment areas to better capture a broader customer base.

The impact of these initiatives is reflected in the Company’s financial performance. In the first half of 2025, LPKR recorded revenue of IDR 4.12 trillion, EBITDA of IDR 627 billion, and net profit after tax of IDR 138 billion.

In the property segment, LPKR posted presales of IDR 2.47 trillion in the first half of 2025, equivalent to 40% of its full-year target. This performance was driven by sustained demand for both affordable and premium landed homes across various regions, which contributed 67% of total presales, reflecting strong interest from first-time homebuyers and end-users. The achievement was further supported by the launch of Park Serpong Phase 4 and the introduction of new premium products, namely Belmont Homes and Bentley Homes.

Meanwhile, LPKR’s lifestyle segment delivered solid performance in the first half of 2025, with stable revenue of IDR 659 billion. Gross profit increased by 13% to IDR 493 billion, while EBITDA rose 41% year-on-year to IDR 213 billion, supported by higher rental income, continued operational recovery, and effective cost optimization.

Operationally, average hotel room rates increased 5% year-on-year to IDR 636,000, while mall footfall remained stable at over 11 million visitors per month, reflecting the continued recovery momentum in the retail sector

About PT Lippo Karawaci Tbk

Listed on the Indonesia Stock Exchange, PT Lippo Karawaci Tbk (“LPKR”) is a leading real estate and healthcare services platform in Indonesia, with operations across 26 provinces and 56 cities nationwide and total assets of IDR 53.7 trillion as of December 31, 2024. The Company’s core businesses include real estate development, township management, healthcare services, lifestyle shopping malls, and hospitality.

As a leading real estate developer and township operator with 1,362 hectares of land ready for development, LPKR develops and manages urban developments primarily in Java and Sulawesi, including its flagship township, Lippo Village in Tangerang. Through two publicly listed subsidiaries—PT Lippo Cikarang Tbk and PT Gowa Makassar Tourism Development Tbk—of which the Company holds 90.65% and 62.69%, respectively—LPKR also develops and manages Lippo Cikarang in Bekasi and the Tanjung Bunga area in Makassar.

In addition, LPKR holds a 29.09% stake in PT Siloam International Hospitals Tbk, Indonesia’s leading private hospital network, operating 41 hospitals and 73 clinics across 23 provinces nationwide. Beyond healthcare, the Company manages 59 malls across Indonesia and holds a 47.29% interest in Lippo Malls Indonesia Retail Trust, a Singapore-listed REIT with assets under management of SGD 1.6 billion as of December 31, 2024. The Company also operates 10 hotels under the Aryaduta brand, as well as country clubs and golf courses.