Business Owners Propose Establishment of Ministry of Housing to Manage Tapera
Friday, 31 May 2024
Chairman of the Indonesian Employers Association (APINDO), Shinta Kamdani, proposed the establishment of a Ministry of Housing to ensure the People's Housing Savings (Tapera) program is well managed. Shinta objected to making Tapera contributions mandatory for the private sector, especially since housing facilities are already available as additional service benefits (MLT) through BP Jamsostek.
"That's what we proposed it back then. This is exactly why we suggested the creation of a ministry because this (Tapera) needs to be properly managed in terms of housing and urban areas," she said after a press conference at the APINDO office in South Jakarta, Friday (31/5).
She said the proposal to establish a Ministry of Housing is already based on APINDO's roadmap. Furthermore, Shinta hopes the government can better optimize BPJS Ketenagakerjaan funds, where according to the relevant PP, a maximum of 30 percent or Rp138 trillion can be used.
The JHT assets, amounting to Rp460 trillion, are considered suitable for the MLT housing program for workers, given the large availability of MLT funds that are deemed underutilized. APINDO had previously sent a letter to President Joko Widodo (Jokowi) to provide input since the Tapera Law was enacted in 2016. However, there has been no response to this effort to date.
"We, along with the workers, are trying to give more concrete input to the government. We have already (provided input) before, but maybe the government didn't hear what we said. But we won't give up; we will continue to provide input," she said.
President Joko Widodo (Jokowi) issued new regulations regarding contributions to the Tapera program for all workers. These contributions will deduct 2.5 percent of the monthly salary of civil servants, military personnel, police officers, employees of state-owned enterprises (BUMN), regional-owned enterprises (BUMD), and private employees.
This policy is stipulated in Government Regulation (PP) Number 21 of 2024 concerning Amendments to PP Number 25 of 2020 on Tapera Implementation, which was enacted on May 20, 2024.
The policy of deducting workers' salaries for the Tapera program has sparked controversy. The policy is seen as adding to the burden on people's lives amid the country's sluggish economy.
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