Indonesian Minister Sandiaga Uno Emphasizes Tapera Policy's Role in Housing for Young Generations

Indonesian Minister of Tourism and Creative Economy, Sandiaga Uno, has voiced strong support for the Tabungan Perumahan Rakyat (Tapera) policy, emphasizing its necessity for enabling young generations to own homes. The Tapera policy, aimed at providing affordable housing options, has been a significant topic of discussion and controversy in recent months.

Why this matters: The Tapera policy has significant implications for Indonesia's housing market and the financial burden of its citizens. If implemented effectively, it could increase home ownership among young Indonesians, but if not, it could exacerbate financial struggles and limit access to affordable housing.

Sandiaga Uno highlighted the importance of implementing the Tapera policy to address the housing needs of younger Indonesians. He stated, 'The Tapera policy must be implemented so that young generations can own homes.' Uno's comments come amid widespread debate over the policy's implications and effectiveness.

The Tapera policy, established in 2016, aims to help low-income individuals own homes by providing a savings scheme. Under the program, workers are required to save 2.5% of their income, while employers contribute 0.5%. However, freelancers or independent workers must bear the full cost of the contribution themselves. The funds are managed by the Tapera Management Agency (BP Tapera) and are intended to be invested in housing financing instruments.

Despite its goals, the Tapera policy has faced significant criticism. A recent polling result showed that 90.69% of 2,362 respondents were unwilling to have their salaries deducted for the Tapera program, while only 9.31% were willing to have 3% of their salaries deducted. Critics argue that the mandatory participation adds to the financial burdens of workers and entrepreneurs.

In response to the criticism, Sandiaga Uno acknowledged the economic challenges faced by people, particularly those in the lower income bracket. He suggested a partnership between workers, the government, and the business world to address the issue of housing ownership. Uno proposed a mechanism where workers contribute 1% of their income, the government contributes 2%, and businesses also contribute based on their financial capabilities.

Uno emphasized the need for transparency in the system, with clear instruments and a secondary treasury market to ensure liquidity. He stressed that the government cannot place all the responsibility on workers or the business world but rather a collaborative effort is needed to provide housing for the younger generation. 'If we don't do it now, if we keep delaying, Gen Z will never be able to own a house. I can guarantee that. Gen Z will never own a house if we don't help them with funding now,' he stated.

The Tapera policy has also been met with resistance from some employers, who claim it is an additional burden. The government has emphasized its importance in helping low-income individuals own homes and has allocated significant funds for the program. As of the first quarter of 2024, the Housing Finance Liquidity Facility (FLPP) has managed Rp 105.2 trillion in funds, providing liquidity for housing financing.

The future of the Tapera policy remains uncertain, with ongoing debates and public pressure potentially influencing its implementation. Nonetheless, Sandiaga Uno's support highlights the government's commitment to addressing the housing needs of young Indonesians and finding collaborative solutions to make home ownership a reality for future generations.

Key Takeaways

• Indonesian Minister Sandiaga Uno supports Tapera policy for affordable housing.
• Tapera aims to help low-income individuals own homes through a savings scheme.
• 90.69% of respondents oppose mandatory salary deductions for Tapera.
• Uno proposes a collaborative effort between workers, government, and businesses.
• Tapera policy's future is uncertain due to ongoing debates and public pressure.