Monday, June 24, 2024 | 11:21 WIB

Govt to cut workers’ income by 3% to establish Tapera

READ MORE

Jakarta, IO – President Joko “Jokowi” Widodo issued Government Regulation (PP) 21/2024 which amended PP 25/2020 concerning the implementation of Public Housing Savings Program (Tapera) on May 20.

This regulation requires workers or self-employees who are at least 20 years old or married and earning an income of at least the minimum wage to become Tapera participants. Each participant is required to pay a monthly contribution of 3 percent from their income. For formal sector workers, 0.5 percent of the sum will be paid by their employers.

“The amount of the contribution has been carefully calculated by the government,” said Jokowi, per CNBC Indonesia, Thu (29/5).

Jokowi explained that Tapera contributions are like BPJS Kesehatan and Ketenagakerjaan (social security) premiums. According to him, it will be difficult at the start but the benefits of this program are tremendous for the community in the long run.

The government claims that Tapera savings will allow the participants to afford decent housing. Tapera is actually not a new program. When previously it only applies to civil servants, it is now expanded to include the private sector workers.

Read: Prabowo Hosts Visit From OECD Secretary General, Discussing Indonesia’s Membership

It will provide home financing which includes purchasing a new home, building a house and repairing a house. However, it cannot be used at will. There are certain conditions that must be met. The funds can only be used to buy a first house, are only given once and have a certain limit on the price of house that can be funded.

BP Tapera commissioner Heru Pudyo Nugroho said the funds can be returned to the principal savings along with the interest after participation ends, when one has retired, reached the age of 58 for self-employed workers, is deceased or no longer able to pay the premium for five years in a row. (un)

POPULAR

Latest article

Related Articles

INFRAME

SOCIAL CULTURE