The recent implementation of the Public Housing Savings program (locally known as Tabungan Perumahan Rakyat – “Tapera”) aims to provide Indonesian employees with a comprehensive housing financing system. Tapera, implemented via Government Regulation No. 25 of 2020 (“GR 25/2020”) and Government Regulation No. 21 of 2024 (collectively referred to as the “Tapera Regulations”), is propagated through a statutory monthly contribution fund that mandates both employers and employees (“Tapera Contribution Fund”).
Key takeaways of the Tapera are as follows:
- Mandatory Enrolment of Employees
The Tapera Regulations mandate the enrolment of private corporation employees that meet the following elements:- minimum 20 years old or married and earn at least the applicable minimum wage; and
- expatriates employed in Indonesia for a minimum of 6 months.
The GR 25/2020 requires enrolment by May 20, 2027. However, this date remains tentative, as the Minister of Public Works and Public Housing has suggested postponing the Tapera program.
- Tapera Contribution Fund
For private sector employees, the Tapera Contribution Fund is set at threshold of 3% of an employee’s salary, where 2.5% of that fraction paid by the employee and 0.5% paid by the employer(s).Employers must deposit the Tapera Contribution Fund by the 10th of every month into a bank account designated by the Tapera Management Body (Badan Pengelola Tapera), the legal entity established by the government to manage the fund.
Failure to comply with these statutory obligations may result in administrative sanctions, ranging from written warnings to the revocation of business licenses. Furthermore, corporations are now expected to develop procedures that allow for the compliance of the Tapera: examples may include updating payroll systems to incorporate the required contributions and making timely payments to the Tapera Contribution Fund.
Our team will continue to monitor and update you on any developments pertaining to the implementation of the Tapera. If you have additional inquiries about this newsletter or would like a further analysis of Tapera, please contact us at info@wplaws.com or reach out to any of our lawyers.