Surabaya Malls Erect Fences, Sparking Economic Speculation Denied by Management

Several shopping malls under the Pakuwon Group in Surabaya, East Java, have recently installed fences around their premises, leading to widespread public discussion on social media. Many netizens linked the fencing to concerns about a sluggish economy, but the mall management has firmly denied these speculations.

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There is no anticipation of anything. We are confident Indonesia is safe and prosperous, the Unitary State of the Republic of Indonesia is the ultimate price.

The malls involved include Pakuwon Mall in West Surabaya, Royal Plaza in South Surabaya, and Pakuwon City Mall in East Surabaya. At Pakuwon Mall, a fence approximately 2.5 meters high, made of green palisade-style iron with pointed tips, now separates the parking area and mall entrance from pedestrian access on the sidewalk. Construction is ongoing at Royal Plaza, where fences estimated at 3 meters high, featuring concrete and pointed iron, are being erected.

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If the economy is not doing well, actually Pakuwon Group is doing well in the first half of 2026.

Sutandi Purnomosidi, Marketing Director of Pakuwon Group, refuted claims that the fencing is a preemptive measure against economic downturns or socio-political instability. "There is no anticipation of anything. We are confident Indonesia is safe and prosperous, the Unitary State of the Republic of Indonesia is the ultimate price," he stated. He asserted that the Indonesian economy and Pakuwon Group's retail business are performing well, with the first half of 2026 showing strong growth. He also pointed out that as a publicly listed company (Tbk), Pakuwon Group's financial reports are accessible, and retail sales remained robust during the recent school holidays.

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Pakuwon is a Tbk, so the financial reports we make can be checked. And if the retail condition was fine until the recent school holidays.

Purnomosidi explained that the reasons for the fencing vary by location. At Pakuwon Mall, the fence is intended to prevent accidents involving pedestrians, especially after the recent completion of the Radial Road, which altered traffic access. For Royal Plaza, the installation is a replacement for an old fence that had been in place for nearly 10 years. The company maintains that its business is healthy and that the fencing is for specific operational and safety reasons, not economic concerns.

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Initially, perhaps at Pakuwon Mall, yes. That is because the Radial Road has just been built. So we are anticipating accidents, especially for pedestrians going to the mall.