Jakarta – The planned implementation of the People’s Housing Savings (Tapera) program has become one of the hot topics of discussion in 2024. The main reason is that this policy will deduct up to 3% of the salaries of private-sector employees and civil servants (PNS) every month.
According to records, the implementation of this policy is outlined in Government Regulation (PP) No. 21 of 2024, amending PP No. 25 of 2020 on the Administration of Tapera. Employers are required to register their employees in the program no later than 2027.
Signed by Indonesia’s 7th President Joko Widodo (Jokowi) on May 20, 2024, this policy has sparked controversy among workers and employers. The reasons vary, from the unwillingness to face additional salary deductions to concerns over its effectiveness in helping people buy homes. The policy is also considered burdensome for both workers and employers.
Workers’ Salaries Deducted by 3%
The regulation states that Tapera is a savings program contributed periodically by participants over a certain period. It can only be used for housing financing and/or refunded with accrued returns after participation ends.
The savings amount is set at 3% of the salary or income. Of this 3%, employees are required to contribute 2.5% of their monthly salary, while employers cover the remaining 0.5%. Meanwhile, self-employed workers are responsible for the full 3%. The funds collected through Tapera are managed by the Tapera Management Agency (BP Tapera).
Under the previous regulation (PP 25/2020), Tapera participants include workers and self-employed individuals. Workers and self-employed individuals earning at least the minimum wage are required to participate, while those earning below the minimum wage can join voluntarily.
Employers and self-employed individuals must deposit the savings monthly, no later than the 10th of the following month, into the Tapera Fund account. Payments are made through custodial banks, collecting banks, or other designated parties.
Workers and Employers Oppose
Both employers and workers have voiced their rejection of the Tapera contributions. President of the Confederation of All Indonesian Trade Unions (KSBSI), Elly Rosita Silaban, stated that neither workers nor employers were involved in discussing the PP 21/2024 regulation.
“Involvement? If we had been involved, it wouldn’t have come to this, or we would have asked for revisions or outright rejected it. We pay contributions until the age of 58, but where’s the house? Where’s the land?” Elly said during a press conference on Tapera in Jakarta, Friday (31/5/2024).
Similarly, the Chairperson of the Indonesian Employers’ Association (APINDO), Shinta Kamdani, stated that no employer was included in BP Tapera’s management. She also expressed her objections back in 2016 before Law No. 4/2021 was enacted.
“We have sent letters to the president, provided our views and inputs, but up until the issuance of Government Regulation (PP 21/2024), there has been no response. Perhaps the government has its reasons for proceeding. That’s why we think clarification is needed,” Shinta said.
Considered Burdensome and Ineffective for Buying Houses
Workers strongly oppose the policy, refusing additional salary deductions. They argue that not only does it add to their financial burden, but it also doesn’t guarantee homeownership through Tapera. If enforced, it’s seen as potentially harmful to workers and participants.
“Rationally and mathematically, the 3% Tapera contribution (2.5% from workers and 0.5% from employers) will not enable workers to buy a house by retirement or if laid off,” said Said Iqbal, President of the Labor Party and KSPI, in a written statement on Wednesday (29/5/2024).
Currently, the average monthly wage for Indonesian workers is IDR 3.5 million. If 3% is deducted monthly, the contribution amounts to IDR 105,000/month or IDR 1,260,000/year. Over 10-20 years, the accumulated amount would be IDR 12.6 million to IDR 25.2 million.
“The big question is, will there be a house priced at IDR 12.6 million in 10 years or IDR 25.2 million in 20 years? Even with added returns from Tapera’s social savings fund, it would be impossible for workers to afford a house,” Said added.
“With a 3% contribution aimed at enabling workers to own a house, it is an outright impossibility for workers and Tapera participants. It burdens workers’ wages monthly, and even at retirement or after being laid off, they still can’t own a house,” he said.
Elly Rosita Silaban also calculated that with Jakarta’s minimum wage, workers would have to pay around IDR 126,000 per month. Additionally, workers’ wages are already subject to a 4.5% deduction. Elly argues that if Tapera is a savings program, participation should be voluntary.
“For the government to cancel or at least revise the crucial provision in Article 7 to make it voluntary. If you want to save, fine. If you want to get a house through Tapera, fine. We calculate IDR 100,000 per month until the age of 58 doesn’t even reach IDR 100 million. I’m retired, and I haven’t gotten a house,” she said.
Overlapping with Existing Programs
Tapera is also seen as overlapping with existing programs, such as the Additional Housing Services (MLT) program for workers under the Old Age Security (JHT) scheme by BPJS Ketenagakerjaan.
“Additional burdens for workers (2.5%) and employers (0.5%) are unnecessary because housing funding can utilize BPJS Ketenagakerjaan funds,” said Shinta Kamdani.
She suggested that the government optimize BPJS Ketenagakerjaan funds, where up to 30% (IDR 138 trillion) of JHT’s total assets of IDR 460 trillion could be allocated for housing programs. Despite the large available MLT funds, their utilization remains minimal.
APINDO also criticized Tapera for increasing the burden on both employers and workers, as current obligations already amount to 18.224–19.74% of wages, including:
- Social Security (Jamsostek):
- Old Age Security (3.7%)
- Death Security (0.3%)
- Work Accident Security (0.24–1.74%)
- Pension Security (2%)
- Health Insurance (SJSN): 4%
- Severance Reserve: Approximately 8%
Delays to 2027 Amid Protests
Amid public outcry, Basuki Hadimuljono, then Minister of Public Works and Housing and Chair of the BP Tapera Committee, expressed regret.
“With all this anger, I deeply regret it,” he said at the Indonesian Parliament Complex, Senayan, Jakarta, Thursday (6/6/2024).
Basuki mentioned that the program didn’t need to be rushed. He explained that the government had been drafting Tapera regulations since 2016. After evaluating its credibility with Minister of Finance Sri Mulyani Indrawati, contributions were postponed until 2027.
“This has been in the works since 2016. Then we, along with the Finance Minister, assessed its credibility—this is a matter of trust. So, we’ve delayed it to 2027. In my personal view, if it’s not ready, why rush it?” he concluded.
