Japanese retailer Aeon has created a joint venture with local company PT Sinar Mas Land called PT AMSL Indonesia to build and operate 20 malls in Indonesia within eight years.

Construction of the first mall will commence in the middle of this year in BSD City, Tangerang. The mall will mark Aeon’s debut in the Indonesian retail market.

The first mall will cost around US$200 million, with major contribution coming from Aeon.

Sinar Mas Land owns 33 per cent of the joint venture company, Aeon the balance.

“After all, are the ones with the (mall) expertise,” said Michael Widjaja, CEO of PT Sinar Mas Land.

The development, expected to be completed by the end of 2014, will span 125,000 sqm. It will house 190 tenants, including Aeon’s owned general merchandise store which will sell its Topvalu brands.

The joint venture will target suburban areas where large populations of young middle-class are concentrated.