One Year After: Meikarta Mega Project Stranded From Pursuing Big Dream

Consumers Demand Fulfilment of Promises

Dozens of people were seen coming out of the Meikarta Marketing Gallery area in Maxxbox Cikarang, Bekasi, West Java last Friday. One of them, Didi, said he visited the marketing office to find out about the continuity of the Meikarta project.

Didi bought an apartment unit on the 30th floor of one of the Meikarta apartment towers. When buying the unit, he and his wife were promised to undergone the handover process in November 2018.

Up to now - a month before the handover target - the tower of his apartment unit is still in the form of a three-story building construction. “I just asked about the certainty of the construction because there is a delay,” Didi said.

He claimed to have paid Rp 14 million and halted his instalment payments when the news about Meikarta’s licensing problems emerged. Besides permit, the Meikarta development project was also hit by another unpleasant news: demonstration of hundreds of marketers who demanded salary.

The Meikarta developer argued that they do not recognize salary scheme, and only provide commission if the marketers manage to sell the apartment units.

After the negative news subsided, Didi continued to pay his instalments. He began to worry again after the emergence of bribery cases involving the officials of Lippo Group and Bekasi Regencial Government. “The problem is getting bigger, so I ask directly,” he said.

Didi also considered asking for his money back. Moreover, he did not get clarity from the marketing staff at Maxxbox regarding the continuation of the Meikarta development process.

Didi is not the only one with such consideration. Rizky Patria (27) also plans to take back the down payment of Rp 36 million for the purchase of two Meikarta apartment units with a size of 36 square meters.

Moreover, Rizky has not yet obtained a bank loan even though he had twice tried to apply for loan twice and received refusal from a different bank.

Unlike Didi, Rizky will give in if he doesn't get his money back. The reason is that the marketing pledge regarding down payment refund has been changed. “The terms are now changed. If the agreement is cancelled, the money is deemed forfeited,” Rizky told Katadata.co.id when interviewed around the Semanggi area.

Although their consumers are starting to worry, the Meikarta management apparently did not stop in attracting new buyers. This is based on observation by Katadata.co.id at a shopping centre in the Semanggi area, Jakarta, on Friday (10/19) afternoon.

The Meikarta marketing team opened two booths, with the support of a number of marketers. They distributed flyers and offered the property products to the visitors of the shopping centre.

They tried to persuade consumers with a variety of attractive offers, from no down payment to two free Air-Conditioners (A/C) as a bonus, for each purchase of a 42-square-meter apartment unit worth Rp 360 million.

When Katadata.co.id asked about Meikarta’s land development permit that was only for 84.6 ha of land, the marketer does not seem to know the problem. “The land permit is already complete,” said a marketer clumsily.

Indonesia Ombudsman highlighted the fate of consumers who have bought Meikarta apartments. “We recommend that the government must provide consumer protection because consumers are the most disadvantaged if the legal problem has an impact on the continuity of the project,” said Indonesia Ombudsman Commissioner Alamsyah Saragih on Wednesday (10/17).

The Ombudsman will continue to oversee the Meikarta permit management process. However, Alamsyah, who had organised a meeting between the West Java Provincial Government and the Lippo Group in the case of permit and marketing disputes, was surprised by Meikarta’s plan to expand the project area to 774 ha.

The land expansion plan came to light after the disclosure of the bribery case. According to the KPK, Lippo Group allegedly filed a permit for the Meikarta development project that cover an area of 774 ha divided into three phases.

The bribe was allegedly given in the first phase of the Meikarta project for an area of 84.6 ha, and then given to expedite and pass permits for the second and third phases with an area of 252 ha and 101.5 ha, respectively.

It happened even though it was clear that the West Java Provincial Government only gave recommendation to Meikarta for an area of 84.6 ha. “Let the KPK work [in the legal process], but we will continue to monitor its progress," Alamsyah said.