Jumat, 18 Juli 2008

Apartment tenants protest over huge service charge


9 01 2006

The Jakarta Post, Monday, January 9, 2006

Banners written in Bahasa Indonesia, English and Japanese intermingled as the owners and tenants of units in the upscale Bumimas Apartment complex in Cilandak Barat, South Jakarta, came together for a peaceful rally at the entrance to the complex on Saturday.

The group — representing 125 occupants, many of whom are Japanese and Koreans — accused the management of the Bumimas Apartment, PT Bumimas Megah Prima (BMP), of unfair business practices.

The occupants allege that the management had delayed the establishment of a Tenants Association, had unilaterally increased the service charge, and denied strata-title owners equal treatment with the tenants of Bumimas's serviced apartments.

The Bumimas Apartment complex, originally called Hilltop Apartments, was constructed in 1994, with Djadjang Tanuwidjaja, PT Inti Tacon and the Sinar Mas Group listed as shareholders.

Former PT BMP marketing manager Hubert Sadeli — who now owns one of the apartments and joined the protest against his former employers — said that initially the company built two towers and 358 apartment units, but some of the apartments were later merged so that currently Bumimas had 325 apartments.

The apartments were initially sold on a strata-title basis, but when the complex was finished in the midst of the Asian economic crisis in 1997, only 125 units were actually sold. The rest were later leased out as serviced apartments.

According to Governmental Regulation No. 4/1988 on apartment developments, the establishment of an apartment development must be quickly followed by the formation of a Tenants Association, with the executives of the association being elected by its members.

"But it was only after seven years that PT BMP agreed to establish a tenants association, and its executives were never approved by us," said a representative of the protesting strata-title owners, Ibnu Tadji H. Nurwendo.

PT BMP's legal affairs manager Syamsoel, Arief Akbar, denied the allegation, however, saying that the formation of the Tenants Association had been done in accordance with the law and in full cooperation with all the tenants.

A tenants association in an apartment complex functions much like the community and neighborhood units in housing areas, and it is a legal entity under Law No. 16/1985 on apartment developments.

Ibnu said that one of a tenants association's functions was to determine a service charge that was acceptable to the tenants.

According to the tenants of Bumimas Apartment, they had never been consulted about the size of the service charge.

As of November, PT BMP increased the monthly service charge to US$1.85 per square meter from $1.50 per square meter previously.

For Ibnu, this means paying between $150 and $240 per month on the service charge alone. By comparison, Nuansa Hijau Apartment in nearby Pondok Indah only charges tenants Rp 6,500 (about US$0.6 8) per square meter per month.

"We never know where that money goes to because the management never shows us its financial reports, and until it does we are refusing to pay the service charge," said Ibnu, who has had the electricity cut off in his apartment for defaulting on his service charge payments since 1999.

Legal affairs manager Syamsoel said that the management had decided to levy the service charge in U.S. dollars as the dollar was more stable than the volatile rupiah.

"I am not authorized to talk about the company's financial reports," he added.

Another grievance of the tenants was that instead of subscribing to full-range local cable TV, PT BMP instead subscribed to Japan's NHK World Premium channel, which it subscribed exclusively to its serviced apartment tenants.

The protesters said that they would continue their protest until the management backed down.

"I gave in once, but I will not give in again. I simply won't pay the increased service charge even if they turn off my electricity and water," Hubert said.



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