Indonesia, along with Malaysia, Vietnam and Thailand, is one of the key growth areas in Asia for luxury brands, according to a recent Bain & Co. survey. As demand grows, high-end retailers are competing for scarce and pricey store space at the country's five luxury malls, and some may be further hampered by rules that require foreign brands to have a local partner to operate stores. "I think companies see that this is the future. They want to have a first-hand look at Indonesia, not because of the sales but because of the potential," said Shannon Hartono of retailer Time International, which partners with more than a dozen global luxury brands including Cartier, Chanel and Gucci.

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