Consumers report development scam

Consumers report development scam

TANGERANG, West Java (JP): Dozens of consumers reported to the
police on Saturday that a private developer had swindled them.

They said the developer, PT Helindo Cipta, had broken its
promise to build houses by the end of this month. The management
also failed to return their down payments as promised, the
consumers said.

A consumer spokesperson, Endang Sunarya, said company
executive Herry Sudarmawan promised to return their down payments
at the location in Mekarsari subdistrict, Rajeg district on
Saturday.

"But Sudarmawan did not show up. He just left a postponement
letter to an officer of the district," Sunarya told The Jakarta
Post.

The letter said the developer would return the down payments
at the office of the state minister of public housing in Jakarta
today.

The consumers, mostly blue-collar workers, paid between Rp
750,000 (US$321.88) and Rp 1.5 million for 21-square-meter
houses.

Monthly installments, according to the developer, were to
range from Rp 45,000 to Rp 55,000, another consumer Iman said.

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

Sunarya said the developer had collected at least Rp 216.4
million from 1,826 buyers.

The 50-hectare location, which was planned for 3,000 small
houses, still belonged to local residents and the developer had
not yet appropriated it, Sunarya said.

He said the developer had also collected down payments from
about 400 workers of PT Argo Pantes and PT Sulindafin garment
companies through the company's cooperatives. (27/jun)