Jakarta, CNBC Indonesia – General Chairman of Real Estate Indonesia (REI) Joko Suranto finally opened his voice in response to the widespread rejection of the provisions on Public Housing Savings (Tapera) which had just been proclaimed by President Joko Widodo (Jokowi) by determining Government Regulation (PP) No 21/2024 concerning Amendments to PP No 25/2020 concerning the Implementation of Tapera (PP Tapera).
Joko said that currently people are confused about Tapera because officials or the government do not have the same and adequate explanation.
For information, paragraph (2) of Article 15 of PP Tapera stipulates that the amount of savings for employee participants which is shared by the employer is 0.5% and the employee is 2.5%. Meanwhile, for self-employed or freelancer participants, this is their own responsibility as regulated in paragraph 3.
Meanwhile, Article 5 of PP Tapera stipulates that every worker who is at least 20 years old or married and has an income of at least the minimum wage is required to become a Tapera participant.
In article 68, employers must also register their workers as BP Tapera members no later than 7 years after the enactment of PP Number 25 of 2020. This means that workers must register their employees as Tapera participants no later than 2027.
“Some time ago I expressed the public's objections, public concerns (about Tapera). And this must be accommodated by the government and explained in a good way. Is (Tapera) inappropriate? The inaccuracy is situational,” said Joko in CNBC Indonesia's Propertinomics, Wednesday (12/6/2024).
“There are questions about people who already have houses, why should they participate and so on. Then for example, workers or workers who have BPJS, do they have products that can be developed, like what? This must receive adequate explanation accommodation from the government. So, people are not confused and there is no confusion. Because 1 official says 1 official says b, c,” he said.
Property entrepreneurs, he added, are in a position to encourage budget fulfillment for housing finance. Because, in the propertynomic proposal launched by REI, financing is the second pillar.
“Yesterday, we were a bit restrained because we saw that there would be strong protests, strong resistance. Because of 3 main things. First, there were legal problems, corruption, embezzlement from the management of fees which yesterday would definitely make a big impression. Why? Because of losses,” he explained.
“Then, there are overlapping contributions that must be paid. Regarding BPJS, then the group for (houses worth) IDR 500 million and above, will they also still be subject to a reduction in contributions? Then, thirdly, regarding those whose income is below IDR 4 million. Will “It's difficult to get housing facilities through FLPP,” said Joko.
Because of this, he continued, REI will send a letter to the government regarding the housing financing budget. Because, he said, there is a large budget or funds that can be utilized through a funding assistance mechanism.
“Let's call it pension funds, there are IDR 1,400 trillion. Let's say 10% is charged, it must be placed at a maximum rate of 3%. That's very easy. Then there is BPJS TK around IDR 300 trillion, also insurance funds, or also for example, BPKH funds can be used as financing assistance funds whose benefits will be very large in providing housing,” said Joko.
Joko hopes that, in the midst of widespread rejection of Tapera provisions, the government is willing to make improvements to the scheme. Because, the government's aim is good, to encourage home ownership for the people amidst the housing backlog or home ownership gap in Indonesia which continues to increase. It is said that the housing backlog in Indonesia has now reached 9.9 million.
“Almost 20% of families do not have a home. Then, if this is not handled more and more, this will reduce the level of community welfare because adequate housing is an indicator of welfare. “And, it will be even more devastating, if this (housing backlog) is not resolved, it will trigger APBN inefficiency and the problem will get bigger,” he said.
“The inefficiency of the infrastructure budget will become even greater. Because if it is not planned, it is not managed from now on (development) of housing will be scattered all over the place. This will trigger inefficiency problems because housing needs infrastructure,” said Joko.
Tapera, he added, is the government's effort to encourage housing financing, replacing Bapertarum.
“So how can Tapera run if there are no funds. The question then is whether it is inappropriate, this is inaccurate because it is situational. Therefore, it needs to be put in place, it must be explained,” stressed Joko.
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