The Indonesian government recently introduced Government Regulation Number 21 of 2024(“GR 21/2024”), which amends Government Regulation Number 25 of 2020 on the implementation of the Public Housing Savings (Tabungan Perumahan Rakyat, frequently referred to as “Tapera”). While this may seem like a new spotlight, it is essential to note that Tapera is not a newly enacted policy; instead, it was first introduced through Law No. 4 of 2016 on Public Housing Savings. In this article, we will delve into the key points and mechanisms of Tapera as outlined in GR 21/2024, a program aimed at addressing the pressing issue of decent and affordable housing in Indonesia.
Under GR 21/2024, Tapera is a program managed by the Tapera Management Body (Badan Pengelola Tapera or “BP Tapera”) to pool and manage participants’ funds for the purpose of facilitating their house financing and/or to be returned alongside the result of savings management upon completion of participation. The program offers financing for house purchase, building, or renovation. This program is mandatory for all workers, including those in private companies and self-employed individuals, who earn at least the minimum wage. Participants are diversified in the following sectors: (i) Civil Servant Candidates, (ii) State Civil Apparatus Employees, (iii) Soldiers of the Indonesian National Army, (iv) Student Soldiers of the Indonesian National Army, (v) Members of the Indonesian National Police, (vi) State Officials, (vii) Workers at State/Region-Owned Enterprises, (viii) Workers at Village-Owned Enterprises, (ix) Workers at Private Enterprises, and (x) Other wages/salary recipient workers. To be eligible, participants must be at least 20 years old or already married at the time of registration. Workers earning below the minimum wage are not obligated to participate but are permitted to do so.
The contribution rate for Tapera is set at 3% of the participant’s wages or income, with a breakdown of 2.5% deducted from workers’ salaries and the remaining 0.5% borne by employers. Self-employed individuals, on the other hand, bear the full 3% deduction. The contributions will then be managed and invested by a custodian bank and investment manager, either conventionally or according to Sharia principles, supervised by the Financial Services Authority (OJK) and BP Tapera.
To qualify for the program, participants must meet several requirements, i.e., being a participant for at least 12 months, classified as a low-income worker, having no prior house ownership, or using the program to finance their first house purchase, building, or renovation. The fulfillment of these requirements will be reviewed by BP Tapera and prioritized based on factors such as length of the membership period, consistency of payment, urgency of house ownership, and availability of utilization funds.
To qualify for the program, participants must fulfill several requirements, i.e., must have been a participant of Tapera for at least 12 months, be classified as a low-income worker, have not owned any house, or using the house financing program to finance their first house purchase, building, or renovation. The fulfillment of such requirements will be reviewed by BP Tapera and approved in priority order based on the length of the membership period, payment consistency, urgency of house ownership, and availability of utilization funds.
Tapera membership may be terminated for various reasons, such as retirement for workers, reaching the age of 58 for self-employed individuals, participant demise, or failure to meet participant criteria for five consecutive years. Participants whose membership is terminated are entitled to a return of their savings and accumulations, which must be provided no later than three months after the termination.
GR 21/2024 imposes several obligations and administrative sanctions that must be borne by an employer regarding the participation of its employee in Tapera, which includes (i) registering its employee as a participant of Tapera by May 20th, 2027, (ii) collecting and depositing the employee and employer’s portion into the Tapera account accordingly, (iii) updating the employee data in relation to the Tapera participation, and (iv) securing all reports and details of the payment. Failing to fulfill these obligations will be deemed as having violated the law, for which the employer may face administrative sanctions in the form of written warnings, administrative penalties, publication of the violation, suspension, and/or revocation of their business license.
If you have any questions or concerns about Tapera’s implementation, don’t hesitate to get in touch with us.
Author: Raden Aji Wibisono (aji.wibisono@fknk.co.id) & Cindy Cherya (cindy@fknk.co.id)
