Thu, 03 Apr 1997

Consumers protest over developer

JAKARTA (JP): Hundreds of people staged a protest at the state minister of public housing's office yesterday, demanding that a developer return their down payments

The consumers, mostly blue-collar workers, said the developer, PT Helindo Cipta, had broken its promise to build houses for them even though they had paid down payments almost two years ago.

"We want our money returned now. We are tired of waiting and wasting our time. The developer always breaks its promises," spokesman for the protesters, Suparman, said. "The developer has failed to keep its promise to give our money back. The company has so far only returned the money to 530 people."

He said about 2,000 people had paid between Rp 750,000 (US$321.88) and Rp 1.5 million for 21-square-meter houses in Mekarsari village, Ajeg district, Tangerang.

The developer told buyers that monthly installments ranged from Rp 45,000 to Rp 55,000, said Iman, another buyer.

"I was interested in the offer as I have never owned a house," the garment factory worker said.

The 50-hectare location, on which 3,000 small houses were to be built, still belongs to local residents as the developer had not yet appropriated it, Suparman said.

Meanwhile, the company's executive Herri Suherman asked the buyers to be patient, saying the company would eventually return their money.

Herri blamed the problem on the company's former executives for the postponement of the housing project.

He said the company had appropriated the land after cooperating with a different developer, PT Mega Metropolitan. (jun)