Astra credit companies

Astra credit companies

Our foundation, Yayasan Pijit Berdiploma Indonesia, purchased
two Isuzu Panthers from PT Dunia Baru with a two-year financing
arrangement. The vendor arranged the finance with two different
Astra Credit Companies.

With both companies, the total amounts to be repaid were
inclusive of the prevailing flat interest rate for 24 months but
the credit period was for 23 months. We were forced to pay the
first month's installment in advance.

Our first vehicle (B 2061 FE) was bought in late October 1995
on contract with Astra Multi Finance and payments are due on the
30th of the month. The second vehicle (B 1896 MA) was bought in
January 1996 on contract with Astra Sedaya Finance and repayments
for this car are made on the 10th of the month.

We issued 11 accounts of Bank Lippo, Jakarta Tebet Branch, to
make the first 12 months of payments.

The two-year lease for our clinic in Jakarta expired in June
1996 and we bought a freehold, main road property. Our clinic was
relocated to Puncak, Cianjur regency, in early July 1996.

The high cost of relocation and extended period of reduced
operational revenues drained our finances and we had cash flow
problems in the months of November and December 1996.

The facilities we had with Bank Lippo were withdrawn and we
opened up a new account with Bank Danamon in Cipanas.

A repossessor came to our clinic in early January 1997 to
repossess one of the cars (B 2061 FE) for the shortfall of two
monthly payments. This vehicle, however, was in Central Java.

We went to the office of Astra Credit the next day and were
directed to speak to an executive, Mr. Agus. We informed Mr. Agus
of our change of address and new bank. We gave him our new
business cards and a stack of brochures which listed our new
address and telephone numbers.

We offered to issue a Bank Danamon cash check to pay for the
two overdue installments as well as new Bank Danamon gyros to
replace those of Bank Lippo. Both were rejected by the cash
department as the Bank Danamon we use is an outstation branch.
The next day we paid the two outstanding installments, and all
the exorbitant penalty charges, in cash.

We informed Mr. Agus that when Mr. Harianto, of PT Dunia Baru,
recommended and arranged for us to finance our purchases with
Astra Credit he told us that the credit company would not
repossess the vehicles unless we were behind by three
installments.

Mr. Agus advised us that the policy of Astra Credit is to
repossess when the shortfall is two months on a 24-month credit
contract if the borrower has not paid more than 18 payments. Once
the 18th payment has been made, the vehicle will only be
repossessed for a shortfall of three installments and, in any
event, the borrower will be notified by letter prior to the
repossession.

We effected our monthly payments by telex transfer in the
months that followed.

A repossessor from Astra came to the clinic at about 9 p.m.
earlier this month to repossess our other vehicle (B 1896 MA) as
we were behind by three installments. We showed the repossessor a
copy of our bank transfer made that morning for the month of June
1997 and we were therefore behind only one payment as the payment
for the month of August was due on the 10th. We spoke to Mr. Agus
by phone the next morning and he asked us to fax him a copy of
our bank transfer, which we did.

At about 8 p.m. on Aug. 8, another Astra repossessor came with
the authority to repossess the first vehicle (B 2061 FE) for
being behind by two installments. The vehicle was repossessed
notwithstanding the fact that we have already paid the 20th
installment, thus leaving a balance of only four more.

We have given Mr. Agus our new address and phone numbers. Why
were we not forewarned either by phone or by letter?

MURTISARI

Secretary

Yayasan Pijit Berdiploma Indonesia

Cianjur, West Java