From Zero Savings to Families in Trouble

People from the lower social strata who are lured into buying a house often become mired in trouble. Instead of getting a dream house, all their savings are lost and their families’ lives are at stake.

KOMPAS/FRD

Eem (43) was seen drawing a pattern of clothes at his boarding house in the Tambora area, West Jakarta on Sunday (19/9/2021). Eem is one of the victims of housing default in Bogor.

In a room measuring 3 meters by 4 meters at a rooming house in the Tambora area of West Jakarta, Eem (43) spoke about the difficulty she experienced in finding a decent house in the nation’s capital. She added that she had moved to three rooming houses in Tambora in the past two years.

At a monthly rent of Rp 1 million, Eem must settle for a small room. The rooming house where she currently lives is located on a narrow alley. The stifling atmosphere of the room prompted Eem to install both an air-conditioner and a wall-mounted fan. "There are many problems. My first rooming house was so hot, [and] the use of water was also limited. I moved after that, but I had a noisy neighbor so I couldn\'t sleep," she said on Sunday (9/19/2021).

In 2018, Eem left Jakarta and bought a house in a housing estate in Bogor regency, West Java. Until now, however, the type 36/60 house she purchased has still not been built.

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Eem became interested in buying a house in Bogor after seeing an advertisement on Instagram. She was attracted by the no-loan payment scheme the developer was offering. Eem had to pay monthly installments with zero interest directly to the developer. The installment rate were also affordable for Eem, who works at a clothing store in West Jakarta.

After checking the location of the planned development, Eem rushed to pay the booking fee of Rp 2 million. A week later, she paid Rp 22.5 million as a down payment, as well as the notary fee of Rp 9.5 million. After that, Eem started paying installments of Rp 1.8 million per month.

However, her house, which cost Rp 250 million, has still not been built. In fact, the land at the housing development site is still a cornfield.

Eem then stopped paying installments in the 12th month and asked to be refunded Rp 54 million. However, she has never received the refund.

KOMPAS/FRD

Dewi (46) (left), serves buyers at her rice stall in the Rawamangun area, East Jakarta on Saturday (18/9/2021). Dewi is one of the victims of default from one of the housing estates in Bekasi Regency.

Argument

The lack of clarity about the house has caused conflict between Eem and her husband. Eem was accused of being too hasty in buying the house. Moreover, her husband was against the plan from the beginning.

The conflict led the two to separate. "When I wanted to [buy] a house there, he wasn\'t sure. Meanwhile, I thought, if not now, then when?” she recalled.

Instead of living in a house they owned, Eem now lives alone in a rooming house. Since the couple separated, her eldest son has been living with his father. Meanwhile, her youngest lives at his grandmother’s house in Bogor.

“When I came home from work, I was usually greeted by the children. Not now. I go to my room alone, crying,” said Eem, her eyes filling with tears.

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Dewi, a rice trader in Rawamangun, East Jakarta, has also swallowed a bitter pill. She and her husband purchased a house in a housing estate in Sukawangi, Bekasi regency. Instead of owning a house, they suffered losses of up to Rp 76.2 million because the house was never built. In fact, they made the purchase with the money they had saved for around 18 years.

“I set aside around Rp 100,000 a day if I had that much. If not, I just set aside Rp 20,000 or Rp 50,000," said Dewi.

After paying the down payment and an extra fee for additional land in mid-2019, Dewi was promised she would receive the house key within a year. However, the house does not exist. The Rp 76.2 million Dewi paid has not been returned.

Today, Dewi, her husband and two children live in a rented house in Cawang, East Jakarta. "I have rented a house for twelve years. I pay around Rp 15 million in rent each year,” she said.

These scams by unscrupulous housing developers have added to the suffering of the poor, especially during the Covid-19 pandemic.

KOMPAS/DIV

Ariesta Sitepu (43) maintains equipment at his fitness center in Depok, West Java, Thursday (16/9/2021). Ariesta is an apartment consumer in Depok who has not yet received clarity on residential units from the developer.

Ali Usman (31) also had the same experience. Ali was among the buyers of a house in a housing estate in Bogor regency. He began paying installments in 2017, but his house has still not been built. In 2018, dozens of home buyers complained that no progress had been made in their construction. They made various efforts, but they still received no clarity from the developer.

The Rp 19 million in advanced payment Ali had paid seemed to have disappeared without a trace. In fact, he had cobbled together the funds from his mother\'s savings and from his salary as a hotel employee.

Due to his difficult financial condition, Ali is now living with his parents in their rented house. During the pandemic, Ali received only half of his normal salary while supporting his wife and child.

Ariesta Sitepu (43) also suffered problems because he was unable to recoup the payments he had made to an unscrupulous housing developer.

It\'s not just about the amount of money (I have lost). This problem also gave me stress. My insomnia has come back.

He purchased a studio apartment in Cimanggis, Depok city, in July 2017. The listed price of the apartment unit was around Rp 250 million. But because he had to pay the installments directly to the developer without taking out a bank loan, the price swelled to Rp 302 million. He paid Rp 55.4 million as a down payment and Rp 4.3 million in monthly installments for five years. The developer promised to complete building the apartment in July 2020. But the promised apartment does not exist and the site remains a vacant plot.

Ariesta asked the developer to return his money totaling around Rp 137 million. But there was no response from the developer. "It\'s not just about the amount of money (I have lost). This problem also gave me stress. My insomnia has come back," he said.

Eem, Dewi, Ali, and Ariesta have made every effort to reclaim their funds, but their efforts have been in vain. (FRD/JOG/DIV/ILO)

This article was translated by Hendarsyah Tarmizi