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)