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)