Law set to protect apartment buyers

Law set to protect apartment buyers

JAKARTA (JP): The government is preparing a decree to protect
apartment buyers from any delay of delivery, State Minister of
Public Housing Akbar Tanjung said yesterday.

Speaking at the ground breaking ceremony of the Bona Vita
apartment in Lebak Bulus, South Jakarta, Akbar said such a rule
is necessary for the sake of the buyers.

"Under current practices, property developers are free to fine
buyers for any delays of the initial payment or later
installments, however, there are no regulations stipulating the
developers' obligation to provide houses punctually," said the
minister.

The house delivery normally is carried out two to three years
after the initial down-payment and installment.

The minister reminded that the 1985 law number 16 stipulates
the need to forming tenants' association to cope with their own
internal problems.

PT Bonauli Real estate, the development corporation, invested
US$ 250 million to build 500 units of apartments in four towers,
with the idea of creating a total living environment. The Bona
Vita apartment area is located on an 11-hectare plot of land
already green and hilly adjacent to the Bona Indah Garden real
estate complex. Seven hectares of the site are devoted to
gardens.

Marketing Agent Chairman of PT Satyatama Graha Doli Siregar
said an exhibition of the apartment will be held at the site June
16-20, the inaugural sale will start on June 21 at the Jakarta
Hilton Convention Center.

The chairman of Real Estate Indonesia (REI), Deddy Kusuma,
said that REI should not be the only party obliged to build low
price housing complexes.

He said that the need of providing nearly 1,000 new houses per
year will succeed if it is managed through a public fund like the
Central Providence Fund in Singapore.

Deddy added the success of the National Logistics Agency
(Bulog) in keeping the buffer stocks of food should be taken as a
model. (kod)