Buyers told to be wary of housing ads<\/p>\n
JAKARTA (JP): Promoting ethics in the real estate business
\nshould start with advertisements that do not mislead the public,
\nspeakers at a discussion on ethics and the real estate business
\nsaid yesterday.<\/p>\n
\"Developers give the impression that they are intentionally
\nmisleading the public,\" Minister of Public Housing Akbar Tandjung
\nsaid at the seminar.<\/p>\n
\"People have begun questioning housing advertisements and
\nbrochures which they say do not reflect reality,\" Akbar said.<\/p>\n
Many advertisements claim a residential site will be completed
\nwith public facilities such as mosques and schools.<\/p>\n
However, the public cannot discern between companies which
\nintend to build their own facilities, and those which only
\nprovide land for the facilities.<\/p>\n
\"The brochures or commercials may not be wrong,\" said Akbar.
\n\"But they mislead a public ignorant of the rules.\"<\/p>\n
Under a 1987 regulation, housing developers are obliged to set
\naside land for public facilities but they are not obliged to
\nbuild them themselves.<\/p>\n
No knowledge of this rule leads consumers to believe that
\ndevelopers have broken their promises when they see the
\nfacilities are not yet built, Akbar said.<\/p>\n
However, developers do not feel guilty because they have
\nfulfilled the minimum requirements, he said at the talks held by
\nthe Indonesian Consumers Foundation.<\/p>\n
The 1987 decree also says the government is responsible for
\nbuilding health centers and schools while inhabitants of
\nresidential areas are to build their own houses of worship.<\/p>\n
As most consumers are unaware of the rules, developers have a
\nduty to provide complete information to the public, the minister
\nsaid.<\/p>\n
Sonny Keraf of the Ethics Development Institute at the private
\nAtma Jaya University said business ethics assume \"a high moral
\nstandard of every business player.\"<\/p>\n
He said ethics include management responsibility.<\/p>\n
As professionals, he said, developers should be ashamed to
\nhave imperfect products even if clients don't detect their
\nfaults.<\/p>\n
Consumer satisfaction goes beyond adhering to a contract,
\nSonny said.<\/p>\n
However, he added, a code of ethics must be supported by laws.<\/p>\n
Edwin Kawilarang, the chairman of Real Estate Indonesia, the
\nindustry's association, said the rules are still confusing.<\/p>\n
\"We do not know yet who is responsible for faults found by
\nbuyers after the contract deadline of 100 days,\" Edwin said.<\/p>\n
On floods in residential sites, Edwin said a developer cannot
\nbe held responsible \"if permits are issued to other companies
\nwhich build residential areas on higher ground.\" This may lead to
\nfloods in areas built earlier, he said.<\/p>\n
The chairwoman of the foundation, Zumrotin K. Soesilo, said
\nREI should not evade its responsibility by making excuses.<\/p>\n
\"Collusion often occurs between developers and officials who
\nissue the permits,\" she said.<\/p>\n
She said advertisements \"should ideally serve as reliable
\nsources of information to consumers.\"<\/p>\n
Last year the organization recorded 114 complaints from
\nresidents in 100 housing areas, mostly from Bogor, Jakarta,
\nTangerang and Bekasi.<\/p>\n
Zumrotin said studies are still needed to determine the links
\nbetween the complaints and housing advertisements. (anr)<\/p>",
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