Wed, 17 Jun 1998

100 customers protest against developer

TANGERANG (JP): More than 100 customers of the Modernland housing development went to the company's office here yesterday to protest the slow progress of the construction of houses, apartments and shop-houses they had bought.

The customers claimed they had paid downpayments on the construction of the properties and some had even paid in cash through banks but the projects apparently ground to a halt in February.

The customers arrived at the company's office at 9 a.m. "We will wait here until we can meet the company's executives," Agus, one of the customers, said.

He said that the customers had frequently visited the office but had never succeeded in meeting the company's executives.

"We just want to exercise our rights. It's normal. But the company executives always refuse to meet with us, for a whole variety of reasons," Johar, an apartment customer, said.

He said about 700 customers have thus far been registered as buyers of the company's apartments.

Meanwhile, in response to the arrival of the many customers, the company's business development director, Benny Loho, said the dispute with the customers was being discussed.

Benny later ordered reporters to get out of the office building but this was strongly protested by the customers.

By late afternoon, the customers still refused to leave the office unless their demand to meet with the management was met.

In an unrelated development, another group of housing customers went to the Bank Internasional Indonesia (BII) office on Jl. Thamrin in Central Jakarta again in line with an agreement they reached with the bank's management last Thursday.

During yesterday's meeting the BII management agreed to answer the customers' objections, which include the reduction of interest rates of between 30 percent and 50 percent currently imposed by the bank.

Benny Kusbini, the customers' spokesman, said that the customers strongly opposed the imposition of high rates. He also urged all BII customers throughout the country to join forces to oppose what they called the bank's arrogance. (41/jun/hhr)