Tue, 05 Aug 1997

Buyers urge developer to return their money

JAKARTA (JP): About 200 buyers upset by allegedly being cheated by a housing developer again went to the office of the state minister of public housing yesterday, asking the minister to insist that the developer return their down payments.

The people asked minister Akbar Tandjung to demand that executives of PT Jasana Pembara return their money since construction had not started on their houses in Lembah Calincing housing complex in Cogreg village, Parung.

The protesters, representing 5,000 buyers, said they wanted their money back plus 8 percent interest as promised by the developer.

Mozart, a resident of Tanjung Duren in West Jakarta, said he had paid Rp 3 million (US$1,176) for a 36-square-meter house on a 96-square-meter plot in 1994.

He said at least five people paid the same amount to the developer's office in South Jakarta.

Another customer, Suwandi, said he thought the developer would not cheat customers because he had checked the company's credibility before deciding to buy.

"The developer was registered with the Indonesian Real Estate Association. I checked the location in Bogor and I found that it belonged to the company. Worst, the groundbreaking ceremony was inaugurated by the minister of public housing," he said.

Meanwhile, minister Akbar Tanjung asked the buyers to be patient, saying their problem would be handled properly.

Akbar said the problem would be settled either by the return of payments or continuing the construction of the housing complex.

A ministry staffer, Suharto, said he had suggested that two other developers take over the housing complex.

"The new developers have visited the location of the housing complex. But they have yet to decide on whether to take over the housing complex," he said.

The customers said they would agree to the housing complex being taken over by other developers.

But they said they would not pay extra for the houses. (jun)