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)