Indonesia's Housing Headache: Untangling Opinions on the TAPERA By: I Gede Dipta Mahesa/2307521116
Tabungan Perumahan Rakyat (TAPERA) is a savings scheme carried out periodically by participants over a certain period of time, which can only be used for home financing.1 The idea of TAPERA emerged in 2000 as a replacement for program Tabungan Perumahan (Taperum) program to address the backlog or shortage of housing supply in Indonesia. The TAPERA bill was first proposed in 2012 during the SBY administration as a savings program to help low-income people buy homes. After experiencing various debates and postponements, the TAPERA Law was passed in 2016.
Source: PP No 4 Tahun 2016, PP No 25 Tahun 2020, dan PP No 21 Tahun 2024
Subsequently, the implementing regulations were issued through Government Regulation No. 25 of 2020, which required all workers to register as TAPERA participants. Starting in 2021, socialization of TAPERA deductions was carried out. In 2020, private and self-employed workers were required to register as TAPERA participants by 2027 at the latest. Towards the end of May 2024, the TAPERA policy was established through Government Regulation No. 21 of 2024. This program was introduced to help people own their first home through a savings scheme. However, a few days after its implementation, TAPERA faced criticism from the public for being considered burdensome for low-income workers and unfair for the middle and upper-income groups. Faced with strong opposition, the Government remained adamant and refused to postpone the implementation of the TAPERA program.2
In my opinion, the TAPERA program is a good initiative by the government to help low- income people own decent housing. The still-significant housing backlog indicates that access to affordable housing remains a challenge in Indonesia. Through a special savings scheme, TAPERA has the potential to help increase people's purchasing power for homes, which has been constrained so far. However, the implementation of TAPERA has also been controversial due to the contribution mechanism involving a 2.5% salary deduction for workers and a 0.5% contribution from employers/business owners. For companies and business owners,
1Tapera.go.id. (2022). Faq Seputar Tapera. Available at: https://www.tapera.go.id/faq-seputar-tapera/
2 LPEM FEB UI. (4 June 2024). Ribut Soal Tapera: Kebijakan “Harga Mati” untuk Turunkan Angka Kekurangan
Perumahan Nasional?. Available at: https://lpem.org/ribut-soal-tapera-kebijakan-harga-mati-untuk-turunkan- angka-kekurangan-perumahan-nasional-special-report-juni-2024/
TAPERA has the potential to add to their operational costs. Asosiasi Pengusaha Indonesia (Apindo) even suggested that the TAPERA contribution should be fully borne by the government.3 On the other hand, labor unions such as KSPI (Konfederasi Serikat Pekerja Indonesia) have rejected TAPERA, considering the 2.5% contribution too burdensome for low-income workers.4
KSPI plans to file a judicial review of the TAPERA regulations with the Constitutional Court and the Supreme Court, as well as hold a protest rally against the program in front of the Presidential Palace together with the Labor Party.5 They criticize the lack of involvement of labor unions in the formulation of the regulations and propose alternatives without burdening workers. In this case, the government's position is crucial in bridging the interests of workers, employers, and the public to reach a fair agreement regarding TAPERA. The government also needs integrated housing sector policies, rather than relying solely on the Tapera program. The suggested policies include.
(1) Focusing on the spatial mismatch between housing availability and community preferences in housing provision by encouraging integration between housing supply by developers and sustainable regional development strategies.
(2) Providing incentives for developers who build mid-rise buildings, such as tax and non-tax incentives, to address the lack of medium-density housing in urban areas of Indonesia.
(3) Encouraging an increased role for social housing provided by the government or non-profit organizations for those who cannot access private housing.
(4) Utilizing abandoned buildings by regulating vacant properties, where owners leaving properties vacant for a long period can be subject to additional taxes or the properties can be taken over by the government after a maximum period.
(5) Providing equal treatment between the owner-occupied and rental housing markets by encouraging regulations on decent housing criteria and policies that are pro-tenant/pro-landlord.
(6) If the Tapera program continues, conduct a pilot first in densely populated metropolitan areas and focus on Transit Oriented Development areas integrated with transportation.
Overall, in my opinian TAPERA is a good program if managed transparently and involving all stakeholders. Its success will depend on the government's ability to convince the public and the business community of the benefits of this program and ensure that its implementation does not impose an excessive burden, taking into account input from various parties, including labor unions.
3Tempo.co. (10 Juni 2024). Apindo DKI Jakarta Desak Pemerintah Batalkan Tapera, Akui Ajukan Keberatan Sejak 2016. Available at: https://bisnis.tempo.co/read/1878120/apindo-dki-jakarta-desak-pemerintah-batalkan- tapera-akui-ajukan-keberatan-sejak-2016
4 Liputan6.com. (29 May 2024). KSPI Minta Program Tapera Dikaji Ulang, Ini Alasannya Available at:
https://www.liputan6.com/bisnis/read/5607257/kspi-minta-program-tapera-dikaji-ulang-ini-alasannya
5 Antara News.com. (6 June 2024). KSPI sebut aksi buruh lebih meluas jika PP Tapera tak dicabut. Available at:
https://www.antaranews.com/berita/4139772/kspi-sebut-aksi-buruh-lebih-meluas-jika-pp-tapera-tak-dicabut
References
Antara News.com. (6 June 2024). KSPI sebut aksi buruh lebih meluas jika PP Tapera tak dicabut. Available at: https://www.antaranews.com/berita/4139772/kspi-sebut-aksi- buruh-lebih-meluas-jika-pp-tapera-tak-dicabut
Liputan6.com. (29 May 2024). KSPI Minta Program Tapera Dikaji Ulang, Ini Alasannya.
Available at: https://www.liputan6.com/bisnis/read/5607257/kspi-minta-program- tapera-dikaji-ulang-ini-alasannya
LPEM FEB UI. (4 June 2024). Ribut Soal Tapera: Kebijakan “Harga Mati” untuk Turunkan Angka Kekurangan Perumahan Nasional?. Available at: https://lpem.org/ribut-soal- tapera-kebijakan-harga-mati-untuk-turunkan-angka-kekurangan-perumahan-nasional- special-report-juni-2024/
Tapera.go.id. (2022). Faq Seputar Tapera. Available at: https://www.tapera.go.id/faq-seputar- tapera/
Tempo.co. (10 Juni 2024). Apindo DKI Jakarta Desak Pemerintah Batalkan Tapera, Akui
Ajukan Keberatan Sejak 2016. Available at:
https://bisnis.tempo.co/read/1878120/apindo-dki-jakarta-desak-pemerintah-batalkan- tapera-akui-ajukan-keberatan-sejak-2016