Vulnerable Position of the Consumers
Protection for homebuyers in Indonesia is still weak, especially if they have already carried out a transaction with a problematic developer.
A house building in a housing complex in Bogor Regency, West Java, which has stopped construction.
JAKARTA, KOMPAS — Weak protection for homebuyers makes their position vulnerable. In the binding of house sale and purchase agreements in general, the obligations of the consumer are regulated, but not the obligations of the developers. If a problem occurs, there is no guarantee that the consumer’s money will be returned.
Even though consumers have succeeded in sending problematic housing developers to prison through legal channels, the money that has been deposited by consumers is still not necessarily returned. The problem becomes more complicated if the consumer pays directly to the developer, without the involvement of a bank through the home ownership credit (KPR) loan facility.