Sat, 25 Jul 1998

Police told to question developer

JAKARTA (JP): The State Minister of Public Housing and Settlements Office has asked police to investigate directors and commissioners of a housing development firm for alleged fraud.

A 200-member delegation representing thousands of customers of Kota Tenjo housing complex in Bogor regency visited the office for the third time Thursday, demanding the company help settle their dispute with developer PT Prasetia Pertiwi.

The customers claim the company accepted their down payments, which averaged Rp 3 million each, and never built the houses or returned their money.

The minister's assistant, Panangian Simanungkalit, told the customers that his office had summoned the management of the developer, a subsidiary of BHS Group, but no response was received.

"We regret that the developer has not taken the matter seriously," Panangian said.

About 20 of the protesters accompanied by Panangian and lawyers Leopold Daryono and Santi Dewi of the Jakarta Legal Aid Institute visited the Jakarta Police Headquarters later on Thursday.

They urged the police to investigate directors and commissioners of the developer.

Lawyer Leopold said the customers had registered their complaints with police on April 9.

Jakarta Police detectives' deputy chief Lt. Col. Bakat Poerwanto said the police had questioned Djoko after receiving the customers' report.

Bakat promised the customers that the investigation would continue and that Djoko and other executives would be questioned again.

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. (jun)