Consumer group welcomes ruling on apartment<\/p>\n
JAKARTA (JP): The Indonesian Consumer Protection Foundation on
\nSaturday hailed the government's announcement of the new decree
\non the sale of apartments.<\/p>\n
"The decree is a good step taken by the government to protect
\nconsumers. However, the decree should also include an article
\nregarding both developers and consumers," foundation chairperson
\nZumrotin K. Susilo said.<\/p>\n
Developers, for example, should also be required to pay fines
\nwhen they cannot finish projects on time. Not a single article on
\nthis is in the new decree, she said.<\/p>\n
Minister of Public Housing Akbar Tanjung announced on Saturday
\nthat his office has issued a decree to regulate sales of vertical
\nhousing on which construction hasn't begun, in order to protect
\nconsumers.<\/p>\n
The new regulation was issued in response to the rising number
\nof sales for property still under construction, and in some cases
\nfor property on which construction has yet to begin, the minister
\nsaid.<\/p>\n
The new decree also gets a warm welcome from representatives
\nof other institutions, including the Indonesian Real Estate
\nAssociation.<\/p>\n
Zumrotin explained that consumers are currently obliged to pay
\nfines if they do not meet their monthly installments on time, but
\non the other hand there are no penalties for developers who are
\nbehind time in completion of constructions.<\/p>\n
She said there are many developers who conduct unfair business
\npractices and tend to hurt consumers by dishonoring contracts.<\/p>\n
There have also been complaints from consumers that there are
\ndifficulties in taking ownership of their apartments after
\nconstruction, even though down payment for the apartment has been
\nmade, she said, adding that under the issuance of the new decree
\nsuch a thing will not happen again.<\/p>\n
Treatment<\/p>\n
Meanwhile, Soeharto, an assistant of the Minister of Public
\nHousing, said there is no intention of causing consumers
\ndifficulties as both consumers and developers will receive the
\nsame treatment.<\/p>\n
The decree stipulates, among other things, that developers are
\nobliged to help buyers form owners' associations, which will
\nmanage apartment facilities.<\/p>\n
The associations have to be set up as a legal entity, whose
\ntasks include the management of the collective land and other
\nsocial facilities.<\/p>\n
"The fees to manage collective facilities will be set by the
\nassociation based on agreement among owners\/tenants," Soeharto
\nsaid.<\/p>\n
He explained that owners will have to pay fees according to
\nthe size of their units. (yns)<\/p>",
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