Recent public debate has focused on Government Regulation No. 21 of 2024 (“GR 21/2024”) on amending Government Regulation No. 25 of 2020 (“GR 25/2020”) on Public Housing Savings (Tabungan Perumahan Rakyat/”TAPERA)
TAPERA is a deposit of funds made by participants periodically within a certain period, which can only be used for housing financing and/or returned along with the accumulated results after the participation ends.
This GR 21/2024 aims to collect and provide long-term, sustainable low-cost funds for house financing to meet the needs of decent and affordable housing for the participants in the form of TAPERA Contributions.
In the GR 25/2020, the TAPERA’s Subject focused on the existing worker segment in state companies (Badan Usaha Milik Negara/BUMN, Badan Usaha Milik Daerah/BUMD, Badan Usaha Milik Desa/BUMDes), military and police, private workers, self-employed and informal sector workers.
In essence, six articles have been revised and one new article added in the Amendment to address various matters including additional definitions, provisions on employee savings calculation, and the appointment of custodian banks by the TAPERA’s Management Agency (Badan Pengelola TAPERA/”BP TAPERA”).
Participants and Contributions Participants are workers, both Indonesian citizens and foreign nationals, who hold working visas and have been working for a minimum of six months in Indonesia.
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Furthermore, the Government also requires criteria to be subjected as TAPERA’s Participants are:
- Every Worker and Self-employed Worker who earns at least minimum wage must become a Participant. Self-employed Workers who earn below the minimum Wage may become Participants.
- Participants shall be at least 20 (twenty) years of age or already married at the time of registration.
The Government mandated private-sector employers to register their workers no later than seven years after the enactment of the GR 25/2020 which is the Year 2027.
The amount of TAPERA contributions is contained in Article 15 of GR 21/2024. TAPERA contributions are paid by employees and employers based on a percentage of 3% of the worker’s wages, of which 0.5% is paid by the employer and 2.5% by the employee. Meanwhile, Self-employed Workers pay their own TAPERA contribution of 3% of their income.
It is required that the contribution be made by the 10th of the following month at the latest, and the TAPERA contribution will be managed by an agency formed by the BP TAPERA.
The membership of TAPERA will be ended in the following cases:
- Retirement;
- Reaching 58 years of age (for Self-Employed workers);
- Passed Away;
- Leaving Indonesia forever;
- Not eligible to become a participant;
- No longer meet the participant’s criteria for five consecutive years.
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Participants whose membership is invalid could claim a refund of the TAPERA Contributions, which will be paid to the participant at a maximum of 3 (three) months after membership ends.
The TAPERA can be claimed for its utilization if the participants meet some criteria, which are:
- have a minimum membership period of 12 (twelve) months;
- belongs to the low-income group (people with a maximum income of 7 million rupiahs for those who are not married and a maximum of 8 million rupiahs for those who are married)
- does not yet own a house; and/or
- use it to finance the ownership of the first house, construction of the first house, or first home improvement.
Once they meet the criteria, they can also apply for housing finance, which includes house purchase, construction, and improvement.
The GR 25/2020 stipulated several subjects for sanction-giving but the foremost, Employers who do not register their employees and contribute to the TAPERA Contribution are subject to the following sanctions:
- Written warning;
- Administrative fine of 0.1% per month;
- Public announcement as a non-compliant employer;
- Suspension of business licenses; and/or
- Revocation of business license.
In the event that you are an Indonesian citizen or foreigner (who holds a working visa and has worked in Indonesia for at least six months) and have any questions or require consultation regarding this matter, please contact our consultants at [email protected] for more information or assistance.
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