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Buyers anxious about Meikarta
Work in progress: An aerial photo taken on Tuesday shows the construction of apartments at Meikarta in Cikarang, Bekasi regency, West Java
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ork in progress: An aerial photo taken on Tuesday shows the construction of apartments at Meikarta in Cikarang, Bekasi regency, West Java. The Corruption Eradication Commission (KPK) has named Bekasi Regent Neneng Hasanah Yasin and Lippo Group operational director Billy Sindoro suspects of bribery in connection with the issuance of building permits.(Antara/Hafidz Mubarak A.)
The recent arrest of businesspeople from diversified conglomerate Lippo Group and Bekasi regency officials pertaining to the Meikarta development in Cikarang, West Java, has left property buyers anxious about the continuation of the project.
The Corruption Eradication Commission (KPK) has accused Bekasi Regent Neneng Hasanah Yasin of accepting Rp 513 million (US$33,740) and S$90,000 ($65,400) from businesspeople in a case revolving around the issuance of permits for the company’s flagship project.
The KPK also named businessman Billy Sindoro, who according to the KPK is a Lippo Group executive, a suspect, along with two Lippo Group consultants – Taryudi and Fitra Djaja Purnama – and Lippo employee Henry Jasmen.
Rosliani, 36, a resident of Pancoran in South Jakarta, who purchased a type-21 apartment to be paid for in installments in November last year, said she demanded certainty over the continuation of the project.
“We have a WhatsApp group consisting of more than 100 Meikarta customers. We are asking the same question: Will it be completed or not?” she told The Jakarta Post on Wednesday.
Rosliani said that, based on the agreement she had made when purchasing the unit, the developer promised to hand over the unit in August next year, and customers were subject to monthly compensation for lateness. However, she was doubtful about the property being finished on time, saying the construction was still in an early stage.
Rosliani was not oblivious to the risk of the project possibly being legally flawed, but she decided to carry on nonetheless, believing any problems would be solved as time went by, particularly as an extensive ad campaign by the company in 2017 led her to believe it was a good investment.
“Somehow I regret it. I knew about the risk, but I don’t understand why I still decided to buy it. The massive advertisement seems to have really influenced me,” Rosliani said.
Permits surrounding the Meikarta project came into the spotlight last year, when then-West Java deputy governor Deddy Mizwar called on Lippo Group to stop construction and marketing for the project, as it had yet to obtain necessary permits.
“If they cannot complete the construction, I hope I can at least get my money back, even only 80 percent of it,” Rosliani said, adding that she had so far paid around Rp 22 million.
She said she had attempted to skip an installment in June, after learning that the project was moving at a snail’s pace. However, the bank reminded her that such a move could harm her, as the Central Bank would potentially put her on a blacklist.
Branded as a future-proof city with a modern and integrated concept, Meikarta has made headlines in numerous publications, and its advertisement are present even in some government offices.
World-class facilities, such as the light rail transit (LRT), a sporting complex and universities are promised to be part of Meikarta’s development, luring home-seekers and those wanting to invest to purchase the units.
Employees working for the developer were reportedly initially required to buy units there, but a source within the company said that idea had been rejected.
Another customer, who wished to remain anonymous, expressed similar concerns but remained hopeful that the unit she bought would be completed, albeit perhaps later than scheduled.
“It’s too late now to cancel it. I will still have to pay a monthly installment of Rp 11 million for the remaining 11 months, otherwise I will be the one to get blamed,” she said. She had purchased a unit priced at Rp 250 million last year in tower F in an installment scheme.
The Indonesian Consumer Foundation (YLKI) has called on the developer to uphold customers’ rights and provide certainty on whether the project would resume. “The arrests have made customers anxious, and if it means the project will stop, the state should get involved to protect the rights of the customers. Nevertheless, the state is responsible for failing to oversee this project,” YLKI chairman Tulus Abadi said, advising would-be customers to refrain from buying units until there was legal certainty.
As of Wednesday night, Lippo Group information and communications director Danang Kemayan Jati and Denny Indrayana, a lawyer representing Meikarta developer PT Mahkota Sentosa Utama (MSU), a Lippo Group subsidiary, had not responded to The Jakarta Post’s question as to whether the company would continue the project.
