Houses that never were

JAKARTA (JP): About 300 people have lodged complaints with police claiming that two property developers, PT Prasetia Pertiwi and PT Duta Cahaya Indosakti, swindled them of Rp 600 million (US$75,000).

The group's representative, Johnny, said Monday the companies had failed to build houses in Serang and Bogor, both in West Java, despite accepting down payments.

Johnny said the companies promised that the houses would be completed by May last year but there was no evidence that they would honor the deal.

"We want our money to be reimbursed or the houses to be built immediately," he said, adding that each customer had paid between Rp 2 million and Rp 3 million as a down payment.

The two companies belong to Bank Harapan Sentosa Group (BHS). The customers were lured by an easy loan offer from BHS and Bank Guna International during the housing promotion in 1996.

BHS was liquidated last year and Bank Guna has been listed by the central bank as an ailing institution.

"At first, we could accept the companies' explanation that they slowed down the project due to the economic crisis," Johnny said. "But there has been no indication that the houses will be built."

The president of both companies, Djoko Soetikno, is currently being investigated by police in relation to the alleged illegal sale of property belonging to PT Arta Buana Sakti (ABS), a member of BHS Group.

"Police said they would summon Djoko for the housing affair," Johnny said.

"We all became worried after BHS was liquidated," he said. "It seems that all companies in the BHS Group are falling apart." (edt)