Customers attack firm in Medan

MEDAN, North Sumatra: A building of another firm claiming to be a multilevel-marketing business, PT Media Laksana Mandiri, was destroyed by hundreds of people in Medan. They said they were customers of the firm, Antara reported on Saturday.

The mass action was the second after customers of another firm set fire to two doors of its building and threw bills in the air.

Customers said they had collectively lost hundreds of millions of rupiah which they invested in the firms, which have promised fast profits without having to create a "down-line" or chain of other customers, as is typical of regular multilevel-marketing businesses.

The news agency stated that the destruction of PT MLM on Jl. Abdullah Lubis took place after customers learned the company had stopped operating without prior notice and for unclear reasons.

The owners were nowhere to be seen.

Police have shut down at least 10 other similar firms in which customers have reportedly lost billions of rupiah.

The crowd on Saturday, having broken into the office, made away with at least one computer as well as other office equipment.

The destruction took place for two hours without police intervention, the news agency said. Only after that did the people filed a report with Medan Police.

The company began operations two months ago. Customers were asked to invest Rp 750,000 each for a promised return of their capital plus profit reaching Rp 1.4 million after 21 days.

The provincial branch of the Ministry of Industry and Trade announced recently that the above company was one of 32 firms which it said deviated from legal business practices.(anr)