Jakarta (ANTARA) - Coordinating Economic Affairs Minister Airlangga Hartarto promised a review of the mandatory public housing savings (Tapera) participation that has drawn negative response from residents and employers.

The mandatory participation was finalized through Government Regulation No. 21 of 2024 on Tapera contribution, signed by President Joko Widodo on May 20.

"We will review it later," Hartarto responded in brief after attending Indonesia's OECD national mission workshop agenda here on Wednesday.

The coordinating minister remarked that the evaluation will be conducted by the Public Works and Public Housing Ministry soon.

"It will be referred for review by the public works and public housing minister (Basuki Hadimuljono)," he stated.

The government regulation necessitates state employees, military and police officers, state- and regional-owned enterprises employees, as well as private employees and freelance workers, with salaries equal to or above the minimum wage, to participate in the Tapera scheme.

The regulation mandates a three-percent deduction in the monthly salary of employees and the income of freelancers for Tapera. Meanwhile, the three-percent contribution is split, with employers covering 0.5 percent of it.

The regulation has failed to elicit a positive response from residents and workers' unions, who view the contribution as further burdening them.

While supporting the government's efforts to help residents purchase their homes, the Indonesian Employers Association (Apindo) has voiced opposition to the Tapera regulation, which it believes overlaps with the existing benefit programs.

Apindo Chairperson Shinta Kamdani highlighted that the Tapera scheme is similar to the scheme of additional benefits on housing provided by the retirement benefits from BPJS Ketenagakerjaan.

"Since Law No. 4 of 2016 on Public Housing Savings was passed, Apindo firmly opposes the law," Kamdani noted in her statement on Tuesday (May 28).

Kamdani also revealed that the association has conducted discussions and held coordination meetings to discuss the Tapera issue, as well as sent letters to President Jokowi to express their concerns over Tapera.

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Translator: Bayu Saputra, Nabil Ihsan
Editor: Tia Mutiasari
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