Housing customers to sue developer

JAKARTA (JP): Hundreds of customers threatened yesterday to sue a private housing developer of the Bank Harapan Sentosa (BHS) Group for failing to meet its obligation to build a housing complex in Bogor regency.

After meeting with 150 of the 4,000 customers of the Kota Tenjo housing complex, lawyer Hotma Timbul Hutapea from the Jakarta Legal Aid Institute said the customers would sue PT Prasetia Pertiwi, a subsidiary of the BHS Group, if the company ignored one more invitation to discuss the dispute.

"We will ask the court to confiscate the 3,000-hectare housing complex as a guarantee while the case is being examined," Hotma told The Jakarta Post.

Yesterday was at least the second time Prasetia executives had been invited to attend a meeting at the legal aid institute's office on Jl. Diponegoro in Central Jakarta, Hotma said.

"But we'll summon them one last time before finally taking this case to court," he added.

The customers' spokesman, Jhonny, said they had urged BHS commissioners Hendra Rahardja and Sudwikatmono to return their down payments.

He said the developer had collected at least Rp 10 billion (US$680,000) from the 4,000 customers, who had each paid a down payment of between Rp 3 million and Rp 5 million.

"If the company does not return the money, we demand it gives the land to the customers, said Jhonny, who claimed to have the backing of 900 customers.

He said the customers presented their demands to the developer's lawyer at a meeting at the Office of the State Minister of Public Housing and Settlements on June 11.

In a letter dated June 18, the company agreed to give the land to the customers, Jhonny said.

"But the company's representatives have never shown up to discuss the decision. We think the company has no inclination to settle the dispute."

The company, which planned to build thousands of modest houses in the Kota Tenjo housing complex, was plunged into financial trouble when the government closed the BHS group's bank on Nov. 1, last year in its first wave of bank closures. (jun)