Over 100 housing costumers protest BII's interest rates

Over 100 housing costumers protest BII's interest rates

JAKARTA (JP): More than 100 customers of Bank Internasional
Indonesia (BII) protested yesterday an increase in their home
loan interest rate, while separately more than 200 people
insisted a developer return their down payments.

The customers of the privately owned BII, demonstrating at the
bank's head office on Jl. MH. Thamrin in Central Jakarta, urged
the bank to lower the interest rate for its home loan scheme.

Benny Kusbini, the spokesman for the protesters, said the
interest rate had been raised to between 50 percent and 70
percent per annum from between 17 percent and 20 percent at the
time they signed their contracts early last year.

"How could we afford to pay the monthly fees with such a high
interest rate? None of us could do that," Benny said, claiming
that 500 customers supported the demonstration.

Earlier this year, BII hiked the rate to 30 percent, which
also sparked anger from the customers.

According to Benny, the customers have protested the bank
several times as it had often hiked its interest rates before the
other banks did.

"We have also learned BII's interest rate is the highest among
the banks in the country," he said.

According to the bank's managing director, Dody Susanto, the
increase was basically in line with the current interest rates
imposed by Bank Indonesia, the central bank.

But he promised customers to review the interest rate, saying
that a decision would be announced next week.

"At the moment, customers are allowed to pay the monthly fee
in line with their first installment," he said.

Separately, more than 200 customers of Kota Tenjo housing
complex in Bogor regency urged developer PT Prasetia Pertiwi, a
subsidiary of Bank Harapan Sentosa (BHS) Group, to immediately
return their down payments unless it was able to continue the
construction.

The customers' spokesman, Jhonny, said the developer had
collected at least Rp 10 billion (US$750,000) from its 4,000
customers, who have each paid a down payment of Rp 3 million
each.

"We urged the group's commissioners, Hendra Rahardja and
Sudwikatmono, to return our money. We think the amount is trivial
for wealthy businessmen like them," Jhonny said.

The customers, accompanied by lawyer Sri Muliani from the
Jakarta Legal Aid Institute, visited the Ministry of Public
Housing and Settlements yesterday.

Minister Theo L. Sambuaga promised to help the customers,
saying he would send a letter to the developer soon.

The developer's lawyer, Abas Ma'un, who was present at the
meeting, said he could not decide the matter and would report it
to his client. (jun)