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