House payments raised by 400%

SURABAYA, East Java: Sriyono, the president director of the state-owned public housing company (Perumnas), turned a deaf ear to the protests of hundreds of potential home buyers after the company suddenly raised its down-payments by 400 percent for modest houses in Driyorejo, East Java.

"There are no plans to lower the down payment, you know there are still many waiting in line to buy these houses," said Sriyono on Thursday.

Last month, around 600 potential home buyers withdrew after Perumnas raised its down payments on its Type 36 houses, on 84 square meter plots, from Rp 1.2 million (US$521.5) to Rp 5.6 million.

Sriyono said the price hike was meant to cover increased land costs. Antara has reported that the potential buyers, mostly civil servants, said that the company had not explained clearly why the down payments had skyrocketed. (mds)