Developer rating system demanded<\/p>\n
JAKARTA (JP): Ciputra, one of the country's most successful
\nproperty developers, suggested Thursday a special rating agency
\nto assess property and housing developers be established.<\/p>\n
Ciputra, the Ciputra Group's founder, said a rating agency was
\nneeded to assess the credibility and financial strength of
\nproperty and housing developers.<\/p>\n
\"It will help protect housing or other property buyers,\" he
\nsaid after a panel discussion here on how to become a
\nconglomerate.<\/p>\n
Ciputra was responding to a suggestion by Minister of Public
\nHousing, Akbar Tandjung, that insurance companies help eliminate
\nfraud in the housing industry.<\/p>\n
He said if developers failed to finish their projects,
\ninsurance companies would be responsible for paying back buyers.
\n\"For this, the developers should pay the insurance premium,\" he
\nadded.<\/p>\n
Developers have frequently failed to build houses that buyers
\nhave paid down payments on, because of financial difficulties.
\nSome have even disappeared with the money.<\/p>\n
Ciputra said the proposed agency should be independent and
\nmust be closely overseen by the housing ministry.<\/p>\n
Although he agreed with the insurance idea, Ciputra said the
\nproposed measure must not burden developers, especially small
\nones, with high additional costs.<\/p>\n
\"What is more important is to inform customers of the range of
\nproperties available and to appraise companies' to show their
\ncredibility,\" he said.<\/p>\n
Ciputra said there was a need for the Indonesian Real Estate
\nAssociation (REI) to screen its members well before accepting
\nthem.<\/p>\n
REI must guarantee that all its members are dependable so
\nconsumers can trust the developers, he said.<\/p>\n
President Soeharto earlier proposed developers give home
\nbuyers bank guarantees to insure payment in case the developers
\nfail to build the houses.<\/p>\n
Many developers disagree with the proposal saying it would
\noverburden small developers.<\/p>\n
In the discussion, Ciputra also said his three companies would
\nstrengthen their financial divisions including Bank Ciputra, and
\nAsuransi Ciputra.<\/p>\n
\"The financial division contributes about 5 percent of
\nbusiness in all three of the companies now, and it will take
\nabout 10 years before it can compete with the other core
\nbusinesses,\" he said.<\/p>\n
All big multi-business corporations must have a strong
\nfinancial division to back them up, he said.<\/p>\n
The Jaya, Metropolitan and Ciputra Groups operate in property,
\nconstruction, consultancy, industry, finance, tourism and
\ninformation. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/developer-rating-system-demanded-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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