Indonesia’s public housing savings rule sparks criticism as it seeks to cover more workers, including foreigners

Indonesia’s public housing savings rule sparks criticism as it seeks to cover more workers, including foreigners

Heru Pudyo Nugroho, BP Tapera director, stated that the changes are a part of the administration’s efforts to “improve the efficiency and accountability of Public Housing Savings control.”

He claimed participants made a specified contribution to the bank, and they received their savings with curiosity at the end of their participation, according to news outlet Kumparan.

According to BP Tapera’s site, employees perhaps stop participating when they retire or pass away. At the age of 58, independent contractors and consultants may leave. If they do not match the membership criteria for five consecutive years, employees may also prevent contributing.

Through several borrowing options, such as mortgages with below-market interest costs for home ownership, home construction, and construction, BP Tapera works to improve access to cover for lower-income groups.

Those with regular wages below IDR8 million are available for Tapera aid, in Papua state, the income level is IDR10 million. &nbsp,

The Ministry of Public Works and Housing also provides funding for the construction of homes through the House Financing Liquidity Service. As of May 8, the service has funded the development of virtually 73, 000 accommodation units across over 8, 000 housing estates in the island, according to BP Tapera’s site.

Depending on site and creator, the costs of the houses vary. In Java ( except Jakarta, Bogor, Depok, Tangerang and Bekasi ) and Sumatra ( except Riau Islands, Bangka Belitung and Mentawai Islands ), for instance, costs start from IDR166 million, according to the Decree of the Minister of Public Works and Housing issued in 2023.

This year, about IDR 9.083 trillion ( US$ 562 million ) will be used to subsidise housing for low- income citizens, stated the website.

By this year, BP Tapera plans to file 13 million workers as participants, according to Mr. Eko.

By 2027, seven decades after the new legislation was enacted in 2020, all businesses may file their employees with BP Tapera under the fresh law. &nbsp,

As of December 18, 2023, full property managed by the Tapera regular bank, derived from 3.07 million members, was IDR7.23 trillion.

BP Tapera’s portfolio management is supervised by the Tapera Committee, the Financial Services Authority, and the Supreme Audit Agency.