Jakarta – Indonesian Minister of Housing and Residential Areas (PKP), Maruarar Sirait, emphasized that shopping centers (malls) must grow alongside their surrounding communities. According to him, business success should not be measured solely by foot traffic and high sales turnover, but also by a company's contribution to improving residential quality, fostering stronger community relations, and creating better urban environments through Corporate Social Responsibility (CSR) programs.

Maruarar delivered these remarks at the State Palace complex in Jakarta on Friday (31/07/2026), following President Prabowo Subianto's meeting with the executive board of the Indonesian Chamber of Commerce and Industry (Kadin). The statement served as a follow-up to intensive communications conducted by Maruarar with Indonesia's top shopping mall owners in the wake of the recent perimeter fencing controversy at several retail properties.

Previously, Maruarar stated he had spoken directly with Lippo Group Chairman James Riady and Pakuwon Group founder Alexander Tedja. Both business leaders reaffirmed that national security conditions remain stable and conducive, meaning there is no reason for shopping centers to erect perimeter fences as a security precaution. Alexander Tedja also assured that the fence recently erected at Kota Kasablanka Mall would be dismantled immediately, clarifying that it was a decision by local management rather than a directive from shareholders or headquarters.

According to Maruarar, these clarifications reflect strong business confidence in Indonesia's stability. Consequently, he hopes the next step for developers will be to strengthen corporate social contributions, ensuring that shopping malls serve not only as commercial hubs but also as integral components of urban environment development.

“The situation is safe. What matters now is that business owners pay attention to their surrounding environments, build healthy communication with local communities and leaders, and execute CSR programs that deliver tangible benefits,” said the Red and White Cabinet Minister, who is known for his hands-on visits to slum areas and his active involvement in renovating unfit housing for low-income communities across urban and rural areas.

Maruarar highlighted that corporate entities can contribute directly through home renovation programs, repairing unfit housing, upgrading slum areas, revitalizing high-density settlements, and installing environmental infrastructure across various regions. He noted that such initiatives not only elevate the community's quality of life but also foster harmonious relationships between commercial developments and neighboring residents.

“Through CSR initiatives, companies can help renovate residents' homes, revitalize slum areas, and assist in structuring densely populated neighborhoods. This aligns with the President's directives to ensure development directly benefits the people,” said Maruarar, affectionately known as Ara.

Maruarar reiterated that this approach aligns with President Prabowo Subianto’s call for close collaboration between the government, the business sector, and the public under the spirit of Indonesia Incorporated. He emphasized that national development cannot succeed if left solely to the government; it requires active participation from all stakeholders.

He affirmed that the government views business leaders as strategic partners in national development. Beyond driving investment and creating millions of jobs, the private sector possesses significant capacity to accelerate the improvement of residential areas through targeted social initiatives.

“Business leaders create numerous jobs. Therefore, what we need is synergy. The government, private sector, and community must move forward together in the spirit of Indonesia Incorporated, as emphasized by President Prabowo,” he said.

Maruarar expressed his appreciation for the openness of James Riady and Alexander Tedja in publicly confirming that Indonesia's security conditions remain sound and economic activities continue normally. According to the minister, public statements from two of the nation's largest shopping mall network owners send a positive signal for the investment climate and demonstrate private sector confidence in the national economic outlook.

He expressed hope that this optimism will translate into concrete actions through CSR initiatives that address real public needs—particularly in repairing unfit housing, upgrading slum areas, and empowering communities living near commercial centers.

Maruarar added that this collaborative spirit forms the bedrock of various programs implemented by the Ministry of Housing and Residential Areas to enhance housing quality nationwide. Home renovation and neighborhood upgrade programs have been successfully carried out thanks to cross-sector cooperation involving ministries, government agencies, local governments, financial institutions, law enforcement bodies, and the private sector.

He concluded that modern shopping centers are not merely venues for economic transactions, but vital components of an urban ecosystem that grows side-by-side with residential neighborhoods. Therefore, the success of a mall should be gauged not only by high tenant occupancy or revenue, but also by its positive contribution to the living standards of surrounding communities.

“As shopping malls thrive, their surrounding neighborhoods must thrive as well. That is the essence of development that benefits everyone,” Maruarar asserted.