Homebuyers wary of developers

Homebuyers wary of developers

By Wahyudi M. Pratopo

JAKARTA (JP): Many people have been cheated by developers who
do nothing after accepting down-payments for houses they have
offered to build.

Many people have also been cheated by developers who claimed
that the housing complexes they are building are located in
flood-free areas.

However, many people like to flock to housing exhibitions and
listen to the information given by the developers' sales and
marketing staff.

"This indicates that demand for houses is still very high," a
visitor to the ongoing Housing and Interior Exhibition at the
Jakarta Hilton Convention Center said.

Jointly organized by the Indonesia Real Estate Association and
PT Debindo the exhibition was opened by State Minister for Public
Housing Akbar Tanjung.

Open to the public from Jan. 26 to Feb. 4, the exhibition
provides information on houses and interior designs.

As many as 70 companies, including 50 developers, 18 interior
design companies and two travel agencies, are taking part in the
10th exhibition.

The prices of the houses offered vary from Rp 6.4 million to
more than Rp 1 billion. The houses are located in more than 40
complexes in Jakarta and the satellite towns of Bekasi, Bogor,
Tangerang as well as Karawang and Serang, all in West Java.

Reno, a visitor, said he got much information from the
exhibition. "We can compare many housing products and evaluate
them one by one through the brochures," he said.

The developers compete to lure prospective buyers in different
ways. Some of them employ beautiful female attendants who will
always smile to those interested in the houses. Others claim that
the houses they build are located in flood-free areas.

Another tactic is to offer transport facilities for people who
want to see the location of a housing complex.

All of them are offering discounts of between 10 and 30
percent during the exhibition.

Anwar of PT Inti Karya Daksa said the exhibition was an
effective showcase for developers to market their products. He
said his company had made 20 transactions in previous exhibitions
and got additional transactions after the exhibition.

PT Inti Karya Daksa is constructing the Puri Sriwedari housing
complex in Cibubur, 20 km east of the city center. House prices
in Puri Sriwedari vary from Rp 144 million to Rp 975 million.

An attendant at the Kota Legenda housing complex said his
company sells 25 houses on average during the exhibition.

He said that his company is constructing small and medium-
sized houses, of about 36 sq.m type and 54 sq.m. The company also
plans to build 300 sq.m houses by the end of this year.

State Minister for Public Housing Akbar Tanjung said in the
opening ceremony that people should be particularly careful
before deciding to buy houses from developers, citing the recent
cases of fictitious housing complexes which hundreds of people
had signed up for.

Warning

Akbar warned that the government will not hesitate in taking
stern action against errant developers.

The government will revoke the business permits of such
developers and even take them to court, he said.

He demanded that development companies give correct
information to consumers, particularly in their advertisements.

Toto Sutarto, a visitor, told The Jakarta Post he had had a
bad experience dealing with a developer during an exhibition some
time ago. "I bought a house in Pondok Ungu, Bekasi. The developer
never told me that the groundwater in the area was salty. The
brochures said everything was fine," he said.

The minister appealed to consumers to file claims with
developers who fail to fulfill their promises.

People can report their disputes with developers to PO Box
5002 at the his office," Akbar said.

Since being opened on Jan. 1 almost 40 complaints have been
sent to the PO Box, he said. Most of the senders complained about
false advertisements.

A committee consisting of officials of the ministry and
related agencies will respond to the complaints and resolve any
disputes, Akbar said.

However, the government is facing difficulties in retrieving
consumers' money that has been invested in fictitious housing
complexes, he said.

The chairman of the exhibition organizing committee, Budyarto,
said the participants had been selected to avoid any unexpected
complaints from consumers.

The organizers also invited the city housing agency and
Indonesian Consumers Organization (YLKI) to take part in the
exhibition, he said.

Sudaryatmo of the YLKI said consumers should be even more
careful before deciding to buy a house if it is located in a
complex which has yet to be developed. "First, they must make
themselves sure that the developer has appropriated the land and
has a valid certificate. Second, they must make sure that the
developer has obtained permits to construct the housing complex,"
he said.