The government’s plan to cut every worker’s salary for the Public Housing Savings (Tapera) has become a topic of discussion in various public spaces. The program also reaped pros and cons in the community.
Yes, previously, President Joko Widodo (Jokowi) issued the latest rules regarding Tapera savings. Employees must give up a salary deduction of three percent each month. This applies to all civil servants, TNI-Polri, BUMN, BUMD, and private employees.
Tapera deposits can only be utilized for matters relating to housing finance. However, Tapera can also be returned along with the results of its fertilization provided that the membership status has ended.
This policy has triggered various reactions in the community. The House of Representatives, especially House V, emphasized the importance of transparency and fairness in its implementation. Meanwhile, various workers’ and employers’ organizations have rejected this policy as it is considered to add to an already heavy burden.
So, what exactly is Tapera? What are the rules and deduction schemes?
Tapera Rules
The regulation is contained in Government Regulation (PP) No. 21 of 2024 concerning Amendments to PP No. 25 of 2020 concerning the Implementation of Public Housing Savings (Tapera) on May 20, 2024.
PP 21/2024 improves the provisions in PP 25/2020, such as for the calculation of the amount of Tapera deposits for independent workers or freelancers.
Overall, Article 55 of the Tapera PP emphasizes that every worker with an age of at least 20 years or married who has an income of at least the minimum wage, must become a Tapera participant.
In fact, Article 7 details the types of workers who must become Tapera participants, not only civil servants or ASN and TNI-Polri, as well as BUMN, but including private workers and other workers who receive salaries or wages.
“Every worker and independent worker as referred to in paragraph (2) who earns at least the minimum wage must become a participant,” quoted from Article 5 paragraph 3 of PP Tapera.
Implementation Schedule
Article 68 of the PP has also been emphasized to employers to register their workers with BP Tapera no later than seven years from the date of enactment of PP 25/2020 on May 20, 2020. This means that the registration must be carried out by the employer starting in 2027.
Article 14 states that the deposits of worker participants for Tapera are paid by the employer and the workers themselves. Later, employers are also required to deposit Tapera deposits on the 10th of each month.
Meanwhile, the deposits of independent worker participants are paid by the independent worker himself or the freelancer.
Piece Rate
The amount of the participant’s deduction deposit is determined based on a certain percentage of the salary or wage reported each month for worker participants, and the average monthly income in the previous calendar year with a certain time limit for self-employed participants.
The percentage of the most recent savings amount is stipulated in Article 15 of PP 21/2024. In Article paragraph (1) of the PP, it is stated that the amount of savings is set at 3 percent of salary or wages for worker participants and income for independent worker participants.
Paragraph (2) of Article 15 regulates the amount of savings for worker participants who are jointly borne by the employer at 0.5 percent and workers at 2.5 percent. Meanwhile, independent worker or freelancer participants are borne by themselves as stipulated in paragraph (3).
The basis for calculating the multiplication of the amount of participant savings is carried out with the provisions of workers who receive salaries or wages sourced from the APBN or APBD is regulated by the minister who organizes government affairs in the field of finance in coordination with the minister who organizes government affairs in the field of state apparatus empowerment.
For BUMN, BUMD, and private workers, it is regulated by the minister who organizes the government in the field of manpower. Meanwhile, for independent workers it is regulated by BP Tapera, but the basis of calculation to determine the multiplication of the amount of savings is calculated from the reported income.
“The amount of Participant Savings as referred to in paragraph (1) and paragraph (2) may be evaluated,” as written in paragraph (6) of Article 15.
Tapera Deduction Mechanism
As mentioned, the amount of savings decided by the government is set at 3 percent of salary or wages, which is borne jointly by employers at 0.5 percent and workers at 2.5 percent. As for participants who are independent workers or freelancers, they are borne by themselves.
So for example, if you are a private worker with a Jakarta UMR salary of IDR 5,067,381, then the amount of Tapera contributions that need to be paid is IDR 126,684 per month. This is the result of the calculation of Rp 5,067,381 multiplied by 2.5 percent.
Interestingly, if the contribution is made for 30 years (at retirement), assuming a return of 20 percent per year, then at retirement the worker will get Rp3,504,120,264.
However, this condition still depends on several conditions such as low inflation, Tapera funds that are well managed and not corrupted, and managers who must find investment instruments with high returns.
Article 20 of PP Tapera also states that the employer is obliged to deposit Tapera deposits every month, no later than the 10th of the month following the month of the deposit in question to the Tapera Fund Account. For independent workers or freelancers, it is the same, every 10th. If the 10th is a holiday, the deposit is paid on the first working day after the holiday.
The Tapera deposit mechanism begins with the obligation of BP Tapera to keep a record of the Participant’s individual account describing the balance of Participant Deposits made by the Custodian Bank.
Then, participants pay Deposits to the Tapera Fund Account at the Custodian Bank, through the Custodian Bank, or parties that organize other payment mechanisms appointed by the Custodian Bank.
Participants’ deposits are divided into allocations of fertilization funds, utilization funds, and reserve funds with a certain percentage composition determined by BP Tapera.
The utilization fund itself is the percentage of Tapera Funds in the Tapera Fund Account which is used for Participant housing financing with an interest rate or margin lower than the interest rate or margin for commercial housing financing set by BP Tapera.
If the participant does not pay the deposit, the Tapera membership status is declared inactive, but the Tapera membership status can be reactivated after the participant resumes deposit payments. Participants whose Tapera membership status is deactivated, their membership accounts are still recorded at BP Tapera.
Housing Financing Criteria from Tapera
After knowing the rules of the mechanism, people also need to know the criteria for housing finance.
In the same regulation, several conditions must be met by participants if they want to obtain housing finance.
This is explained in detail in Article 38 paragraph (1). Some of the criteria presented in this paragraph are as follows:
- Participants must have a minimum membership period of 12 months.
- Participants belong to the low-income group.
- Participants do not yet own a home.
- Participants can use it to finance their first home ownership, first home construction, and first home repair.
DPR and Expert Responses to Tapera Policy
Deputy Speaker of the House of Representatives, Abdul Muhaimin Iskandar, stated that this policy has received serious attention from the House. According to him, the government must provide a detailed explanation of the implementation of this policy so as not to cause misunderstanding in the community.
Muhaimin emphasized the importance of transparency and ensuring that this policy does not burden the community.
“The government must provide an explanation to the DPR. The policy should not burden the community,” he said as quoted by Tempo (29/05/2024).
Suryadi Jaya Purnama, a member of Commission V of the House of Representatives from the PKS faction, argued that the new Tapera rules will have a broad impact, especially for the middle class who already own a house.
According to Suryadi, the government needs to consider providing assistance for this group to buy productive properties such as shophouses, in order to improve their welfare.
“This will further improve the welfare of the middle class,” said Suryadi.
In addition, research from the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) in 2023 showed that President Jokowi’s economic policies tend to forget the middle class.
Rejection from Apindo and Labor Unions
The Indonesian Employers Association (Apindo) firmly rejects the policy of cutting private workers’ wages for Tapera. Chairperson of Apindo, Shinta Kamdani, highlighted the already high burden due to BPJS Health and BPJS Employment contributions.
With the depreciation of the rupiah and weakening market demand, the additional burden through Tapera is considered unwise.
“The latest Tapera program is adding new burdens, both from the employer and worker side,” said Shinta, as Chairperson of Apindo reported by Jawa Pos (29/5/2024).
The Federation of Textile, Clothing and Leather Workers Unions (FSP TSK SPSI) also rejects the Tapera policy. Chairman of FSP TSK SPSI, Roy Jinto, asked the government to cancel and revoke PP Number 21 of 2024. According to him, this policy is unfair and only adds to the burden on workers and employers.
The Konfederasi Serikat Pekerja Seluruh Indonesia (KSPSI) under the leadership of Jumhur Hidayat also criticized the Tapera policy. According to him, this policy forces laborers and employers to deposit contributions that will settle until the age of 58.
This is considered detrimental because the funds are used for investments that have no clear benefits for workers.
“This government likes to collect people’s money, then fry it in various investment instruments,” he said.
