Lately, there’s been a lot of buzz about Tapera. Your social media timeline is likely filled with various discussions, most of which express negative reactions to the government's latest plan.

So, what exactly is Tapera? What is the government trying to achieve through this program? Who are the participants, and how will it impact the Indonesian public? This article aims to answer those questions—and maybe more.

What Is Tapera?

Tapera stands for Tabungan Perumahan Rakyat or Public Housing Savings, a program launched by the Indonesian government to help citizens gradually save toward home ownership. According to the government, Tapera is a solution to housing finance challenges for workers.

On May 20, 2020, President Joko Widodo enacted Government Regulation (PP) No. 25 of 2020 regarding the Implementation of Tapera, as reported by Kompas. Then, on May 20, 2024, the government passed PP No. 21 of 2024, amending the previous regulation.

This new regulation improves the earlier version, including how contributions are calculated for self-employed workers or freelancers. The concept of this savings program has actually been around since 2016 through Law No. 2016 on Public Housing Savings.

According to the regulation, Tapera is a periodic savings program made by participants over a specific period. The funds can only be used for housing finance or will be returned with investment returns once the membership period ends.

Who Are the Tapera Participants?

Tapera includes all workers in Indonesia, both in the formal and informal sectors. Formal workers include civil servants (PNS), military and police personnel (TNI and Polri), and private sector employees who earn wages. They are required to participate in Tapera as part of the national social security system, which aims to ensure that all workers have access to decent housing finance.

In addition, informal sector workers—including self-employed individuals and freelancers—can also join Tapera. For these self-employed workers, contribution amounts are adjusted to their income levels, as stipulated in PP No. 21 of 2024. In short, Tapera includes all layers of the Indonesian workforce, aiming to give both formal and informal workers equal opportunities to own a home.

How Is Tapera Managed?

Tapera is managed by the Public Housing Savings Management Agency (BP Tapera), which is responsible for overseeing the program. BP Tapera collects contributions, manages the pooled funds, and ensures that the funds are invested effectively to generate optimal returns for participants.

The agency also handles the disbursement of funds for eligible participants needing housing finance, and returns savings with investment gains once the membership period ends.

To ensure transparency and accountability, BP Tapera collaborates with various financial institutions and banks to manage and distribute Tapera funds. The collected funds are invested in safe and profitable financial instruments like government bonds and term deposits to maximize participants' savings growth. BP Tapera also offers educational resources to help participants understand the benefits of Tapera and how to access available housing finance.

Read: How to Save Effectively and Accumulate IDR 100 Million in One Year

How Much Are the Tapera Contributions?

According to PP No. 21 of 2024, Tapera contributions are set at 3% of a participant’s salary, wages, or income. For employed workers, 0.5% is paid by the employer and 2.5% by the employee. For self-employed individuals or freelancers, they must cover the full 3% themselves.

Public Reactions to Tapera

Since its introduction, Tapera has received some negative reactions from various segments of society. One of the main criticisms comes from self-employed individuals and freelancers who feel that mandatory contributions would place an additional financial burden on them. They argue that with unstable income, it’s difficult to set aside funds regularly. This raises concerns that the program may not fully consider the economic realities of informal workers.

Some economists have also questioned the effectiveness of how BP Tapera manages the funds. There are concerns about potential mismanagement or underperformance in investment returns. Transparency in fund management has become a key issue. The public demands stricter oversight and regular reports on fund usage to ensure Tapera’s objectives are actually achieved.

Another criticism comes from people who already own homes. They find it unfair that they are still required to contribute to Tapera even though they don’t need housing assistance. While the regulation allows the funds to be returned at the end of the membership period, many still see it as an unnecessary expense. They hope for exemptions or alternative schemes for those who already have homes.

Finally, there are concerns about whether BP Tapera has the infrastructure and administrative capabilities to handle millions of participants across various sectors. Some doubt its ability to efficiently manage and distribute large amounts of money, especially in the program’s early stages. These concerns include potential delays in fund disbursement and difficulties in accessing services for those in need of housing support.

Read: The Benefits of Deposits at Neobank: From Competitive Interest Rates to Flexibility

Interesting, isn’t it, this whole Tapera debate? As of the time this article was written, the government has decided to postpone the implementation of Tapera. However, the public is demanding that the program be cancelled entirely, not just delayed.

What are the alternatives? If you’re thinking about saving up for a house, you can simply open a WOW Time Deposit account. It’s a less burdensome option, offering competitive interest rates.

So, which will it be—Tapera or WOW Time Deposit?

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PT Bank Neo Commerce Tbk is licensed and supervised by the Indonesia Financial Service Authority (OJK) and Bank Indonesia (BI), and an insured member of Deposit Insurance Corporation (LPS).