Fri, 18 Dec 1998

Hapless house buyers want down payment

JAKARTA (JP): Hundreds of customers of Bumi Indah housing complex in Tangerang intensified their struggle on Thursday to regain the down payments of between Rp 5 million (US$666) and Rp 8 million they paid to the site's developer.

Forty of their representatives visited the Jakarta Legal Aid Institute on Thursday to seek help in their dispute with developer PT Prasetia Pertiwi, a member of the Bank Harapan Sentosa (BHS) group.

The customers' spokesman, Agus, said they demanded the company immediately return their money, which they paid to the developer in 1996 as a deposit for the promised houses, because Prasetia Pertiwi had failed to meet its promise to build the houses.

On Thursday the site was empty.

"We have often asked the firm to return our money but they only gave us promises," said Agus, who claimed to represent 900 customers.

The customers, he said, paid the down payment through BHS and Bank Guna, which were both liquidated by the government in November last year. They now wanted the banks' owner, Hendra Rahardja to return their money, Agus said.

"Although Hendra has been reported for fleeing abroad, we know his assets are still here," he said.

He said Hendra's assets included a motorcycle company whose factory was in North Jakarta.

"Hendra's executives still run the firm," he added.

The customers asked the government to seize Hendra's assets, sell them and give the money to the customers, he said.

None of the developer's executives could be reached for comment on Thursday.

Lawyer Paulus R. Mahulette from the Jakarta Legal Aid Institute said that he would soon summon the developer to discuss the customers' demand.

"As a last resort, we will consider taking the case to court. We will sue the developer for swindling," Paulus said.

He said hundreds of customers of the Kota Tenjo housing complex in Bogor regency, developed by the same company, visited the institute to seek help with a similar problem about two months ago. (jun)