As A Home Owner How Tapera Mandatory Programme Benefits You?

Kenny Wiston

Recently, President Joko Widodo issued Regulation of the Government No. 21 of 2024, which amends Regulation of the Government No. 25 of 2020 concerning the Organization of Public-Housing Savings (Tapera). This amendment has been in force since May 20, 2024.

Under the original Regulation 25/2020, Tapera participants were required to save 3% of their wages (for employees) or income (for self-employed individuals). Additionally, participants had to meet certain criteria, including a minimum age of 20 or marriage if they were under 20. The program covered various sectors, such as civil servants, members of the Indonesian National Armed Forces, police officers, state officials, and employees of state-owned, regionally-owned, and private enterprises.

The recent Amendment introduces changes to the calculation basis for employee savings. Although the amounts of savings remain unchanged, the multiplication factors for calculating participants’ savings have been adjusted. Here’s a summary of the relevant provisions:

• Employee Types and Responsible Authorities:
  • Employees receiving salaries or wages from the state/regional budget: Determined by the Minister of Finance in coordination with the Minister of Administrative and Bureaucratic Reform.
  • Employees working for state/regional/village-owned enterprises or private enterprises: Determined by the Minister of Manpower.
  • Employees working for state-owned enterprises: Determined by the Minister of State-Owned Enterprises.
  • Other types of employees: Determined by the Ministry of Manpower.
  • Self-employed individuals: Determined by BP Tapera.
  • Employees working for regionally owned enterprises: Determined in consultation with the Minister of Home Affairs.
  • Employees working for village-owned enterprises: Determined by the Minister of Villages, Development of Disadvantaged Regions, and Transmigration.

Furthermore, the Amendment addresses additional definitions and provisions related to custodian banks appointed by the Tapera Management Agency (BP Tapera). Overall, these changes aim to enhance the Tapera program and provide a clearer framework for participants.

What is the purpose of Tapera?

The Tapera program, officially known as the Public-Housing Savings Program, serves several important purposes in Indonesia:

1. Promoting Homeownership:Tapera encourages individuals to save a portion of their income specifically for housing purposes. By doing so, it aims to increase homeownership rates and improve access to affordable housing.
2. Building a Housing Fund:Participants contribute a percentage of their wages or income to the Tapera fund. Over time, this collective savings pool accumulates, creating a substantial fund that can be used for housing-related initiatives.
3. Supporting Housing Development:The funds collected through Tapera are utilized for various housing-related activities, such as constructing low-cost housing, improving infrastructure, and providing housing loans to eligible participants.
4. Enhancing Financial Security:By saving for housing, participants build financial security and resilience. Owning a home can provide stability and reduce the risk of homelessness.
5. Stimulating the Economy:Investments in housing contribute to economic growth. Housing projects create jobs, boost local economies, and enhance overall prosperity.

In summary, Tapera aims to facilitate homeownership, strengthen housing infrastructure, and improve the overall quality of life for Indonesians by promoting responsible savings and investment in housing-related initiatives.

Tax benefit

While I don’t have specific details about the tax benefits associated with Tapera, I can provide some general insights. Keep in mind that consulting a tax professional or referring to official government guidelines is advisable for accurate and up-to-date information.

Here are potential tax-related benefits related to participating in Tapera:

1. Tax Deductions:Contributions made to Tapera may be eligible for tax deductions. These deductions could reduce your taxable income, resulting in lower income tax liability. However, the exact rules and limits may vary based on local tax regulations.
2. Exemption on Interest Income:The interest earned on your Tapera savings may be exempt from income tax. This encourages participants to save more and earn interest without tax implications.
3. Capital Gains Tax Exemption:If you use your Tapera savings to purchase a home, any capital gains realized from the sale of that property may be exempt from capital gains tax. This benefit encourages homeownership and investment in real estate.
4. Stamp Duty Exemptions:Some regions may offer stamp duty exemptions or reductions for property transactions involving Tapera participants. Stamp duty is a tax imposed on property transfers, and exemptions can reduce transaction costs.
5. Other Local Incentives:Depending on your location, there might be additional incentives related to Tapera, such as property tax reductions or subsidies for housing-related expenses.

What are the eligible housing-related purposes for Tapera withdrawals?

The Tapera program provides housing financing options for eligible participants. Here are the key purposes for which Tapera funds can be utilized:

1. Home Ownership Loan (KPR):
   • Purpose: Participants who wish to buy ready-made houses can apply for KPR financing. This scheme allows you to purchase a house.
   • Loan Limit: The loan limit is based on your income and zoning group.
   • Tenor: Maximum tenor of 30 years.
   • Down Payment: Participants may apply for 0% down payment.
   • Location Choice: You are free to choose the location of the house¹.
2. Home Development Loan (KBR):
   • Purpose: Participants who want to build their first houses on their own land or their partners’ land can apply for KBR financing.
   • Loan Limit: Based on the Budget Plan (RAB) and income group.
   • Tenor: Maximum tenor of 15 years¹.
3. Home Renovation Loan (KRR):
   • Purpose: Participants can apply for financing to renovate their existing homes.
   • Eligibility: Ensure you meet the requirements, including a minimum membership period of 12 months (except for ex-Taperum PNS participants), maximum net income of IDR 8 million per individual, and expressing interest in applying for Tapera financing.
   • Married Couples: Married couples each have the same rights but cannot apply for Tapera financing simultaneously. They also cannot choose the same type of financing (e.g., if one applies for KPR, the other can apply for KRR).
   • Loan Limit: Varies based on the specific financing scheme

Benefit of Tapera Program

The Tapera program in Indonesia provides several benefits for participants, particularly those with low income. Let me break it down for you:

• • • Long-Term Housing Loans: Participants can access long-term housing loans, including mortgage loans (KPR), house construction loans (KBR), and house renovation loans (KRR) with terms up to 30 years and fixed interest rates below market rates³.
    • Affordable Housing: Tapera aims to provide affordable and decent housing for participants by accumulating sustainable long-term funds. Tapera offers a structured way for employees to save for housing, making homeownership more accessible.

What Benefit You As A Home Owner?

If you already own a house, the Tapera program may not directly benefit you in terms of obtaining housing financing. However, there are still some indirect advantages:

1. Investment Opportunity:
   • While you won’t use Tapera for housing loans, the funds you contribute can serve as a long-term investment.
   • The program aims to accumulate sustainable funds, so your savings may grow over time.
2. Social Impact:
   • By participating in Tapera, you contribute to the overall goal of providing affordable housing for others.
   • Your savings help support housing initiatives and benefit the broader community.
3. Financial Discipline:
   • Regular contributions to Tapera encourage financial discipline.
   • Even if you don’t need housing financing, saving consistently can improve your financial habits.

Tapera primarily targets first-time homebuyers, but your participation still contributes to the program’s success.

What happens to my Tapera account after retirement?

After retirement, your Tapera account undergoes specific processes. Let’s break it down:

1. Account Status:
   • Upon retirement, your Tapera account remains active.
   • You can continue to manage your account, but no further contributions are required.
2. Withdrawal Options:
   • You have two primary options:
     • Withdrawal for Housing Needs:
       • If you haven’t used your Tapera funds for housing financing during your working years, you can withdraw the accumulated savings.
       • This withdrawal can be used for housing-related purposes, such as home repairs, renovations, or purchasing a second property.
     • Retirement Withdrawal:
       • You can choose to withdraw the entire balance for personal use.
       • However, this option is less common, as Tapera is primarily designed for housing savings.
3. Tax Implications:
   • Be aware of tax implications when withdrawing funds.
   • Consult with a financial advisor or tax professional to understand the tax treatment of Tapera withdrawals.

That Tapera serves as a valuable savings tool during your working years, and its benefits extend into retirement.

Double Social Security?

Tapera and BPJS Ketenagakerjaan serve different purposes, but they both involve contributions from workers. Let’s explore the key differences:

1. Tapera (Tabungan Perumahan Rakyat):
   • Purpose: Tapera is specifically designed to help workers save for housing needs. It aims to accumulate long-term funds for affordable housing financing.
   • Eligibility: Private sector employees, state-owned enterprise (BUMN) and regional-owned enterprise (BUMD) employees, and civil servants (ASN) are required to participate in Tapera.
   • Contribution Rate: The contribution rate for Tapera is 3% of the worker’s salary.
   • Payment Split: Employers contribute 0.5%, while workers contribute 2.5%.
   • Participation Criteria: Workers aged 20 or older, married individuals, and those earning at least the minimum wage in their region are required to participate.
   • Cashing Out: Participants can access their Tapera funds when their membership period ends or upon reaching retirement age¹.
2. BPJS Ketenagakerjaan:
   • Purpose: BPJS Ketenagakerjaan provides social security coverage for workers. It includes protection against work-related accidents, old-age benefits, pensions, and death benefits.
   • Coverage: Formal and informal workers participate in BPJS Ketenagakerjaan.
   • Contribution: Both workers and employers contribute to BPJS Ketenagakerjaan.
   • Cashing Out: Similar to Tapera, BPJS Ketenagakerjaan offers benefits that can be accessed after retirement.
   • Specific Benefits:
     • Jaminan Hari Tua (JHT): Old-age benefits.
     • Jaminan Kecelakaan Kerja (JKK): Work-related accident benefits.
     • Jaminan Kematian (JKM): Death benefits.
     • Jaminan Pensiun (JP): Pension benefits¹.

In summary, while both Tapera and BPJS Ketenagakerjaan involve deductions from workers’ salaries, they serve distinct purposes. Tapera focuses on housing savings, while BPJS Ketenagakerjaan provides broader social security coverage. The additional 3% deduction for Tapera will be implemented no later than 2027. Frankly speaking this additional income deduction, however, shall not be seen as  double dipping and burden. It remains employees’ savings and benefits with employers contributions.