Home Blog 3 Steps for Using the Tapera Financing System Human Resource | Indonesia | Payroll 3 Steps for Using the Tapera Financing System InCorp Editorial Team 3 June 2024 6 minute reading time Table of Contents Objectives of the Tapera Program Legal Framework for Tapera Program Understanding the Tapera Management The Benefits of the Tapera Program Eligibility Criteria for Tapera Program Participants Tapera Contribution Amount Requirements for Housing Financing with Tapera Steps to the Tapera Housing Financing Process Entrust Your Payroll Processing with InCorp Tapera (Tabungan Perumahan Rakyat or Public Housing Saving) is a government-initiated program that provides affordable housing financing to enhance national welfare. The program was launched through Government Regulation No. 21 of 2024. Therefore, the new regulation amends Government Regulation No. 25 of 2020 on Tapera implementation in the past. This amendment mandates all private employees, state-owned enterprise (BUMN)/regional government-owned enterprise (BUMD) employees, and members of the Indonesian National Armed Forces (TNI) and the Indonesian National Police (Polri) to set aside a predetermined portion of their monthly income. Objectives of the Tapera Program Two main objectives guide the Tapera program’s direction and purpose. These objectives are the foundation for the program’s initiatives and activities, shaping its focus and intended outcomes. 1. To Facilitate Affordable Housing Acquisition The program encourages regular savings to empower individuals to afford decent housing, particularly for low-income communities. 2. To Promote Sustainable Housing Development The program seeks to generate long-term, low-cost funding for housing development, addressing the growing demand for affordable housing solutions. Legal Framework for Tapera Program These legal documents form the cornerstone of the program, providing a comprehensive framework for its effective implementation and ensuring alignment with national housing policies. Law No. 4 of 2016 concerning People’s Housing Savings Establishes the program’s objectives, principles, and institutional framework. Government Regulation No. 25 of 2020 concerning the Implementation of Tapera This regulation elaborates on the program’s operational details, including BP Tapera’s roles and responsibilities, participant registration procedures, contribution mechanisms, and investment strategies. Government Regulation No. 21 of 2024 This regulation introduces significant changes to Government Regulation No. 25 of 2020. It expands the scope of participation to include private sector employees, BUMN/BUMD employees, TNI/Polri personnel, and self-employed workers. Furthermore, it revises the contribution calculation formula for freelancers. READ MORE:Indonesia Implements New Regulations For Withholding TaxWhat You Need To Know About Taxation Of Benefits In KindGuide On Filing Corporate Annual Tax Return (SPT) In Indonesia Understanding the Tapera Management BP Tapera manages all the savings as a public legal entity. As the custodian of these funds, it plays a crucial role in ensuring the program’s success and meeting its housing-related objectives. The Tapera Committee oversees BP Tapera and is comprised of distinguished individuals representing key stakeholders in the housing sector. The Committee includes the Minister of Public Works and Housing (PUPR), the Minister of Finance, the Minister of Manpower, an Otoritas Jasa Keuangan (OJK) member, and housing professionals. This diverse composition ensures that BP Tapera’s decisions align with the nation’s broader housing policies and priorities. The Benefits of the Tapera Program Participation in the program offers its members a range of advantages, as shown in the table below. BenefitDescriptionHousing Financing AssistanceKredit Pemilikan Rumah (KPR): Financing for home purchaseKredit Bangun Rumah (KBR): Financing for new home constructionKredit Renovasi Rumah (KRR): Financing for home repairs or renovationsRetirement SavingsTapera savings can be withdrawn upon retirement age and the end of Tapera membership.Facilitating Housing Sector DigitizationThe emergence of the Housing Information Centre (HIC) digital platform aims to provide participants with comprehensive housing information. Eligibility Criteria for Tapera Program Participants As per Government Regulation No. 25 of 2020 and Law No. 4 of 2016, individuals who are mandated to participate in the program must meet the following criteria: Indonesian citizen (WNI) Be at least 20 years old or married. Have an income of at least the minimum wage. Fall into the category of Civil Service Applicant (CPNS), Civil Servant (ASN), member of the TNI/Polri, state official, BUMN/BUMD/BUMS employee, private employee, or self-employed/informal worker. Termination of Tapera Membership The membership ceases when a participant fulfills any of the following conditions: Has retired as a worker Reaches the age of 58 (specifically for self-employed workers) Passes away Does not meet the criteria for Tapera participation for five consecutive years Tapera Contribution Amount According to the amendments in Government Regulation No. 21 of 2024, the Tapera contribution amount is 3% of the wages received by participants categorized as workers and freelancers. The contribution is a shared responsibility for workers: 0.5% is paid by the employer (company), and the employees themselves bear 2.5%. In contrast, freelancers must bear the entire contribution of 3%. Requirements for Housing Financing with Tapera The following are the conditions for the participants who wish to apply for home financing using their Tapera contributions: Have a Tapera membership of at least 12 months. Classified as a Low-Income Household (MBR), meaning an income of less than 8 million/month (regions other than Papua and Papua Barat) or less than 10 million/month (Papua and Papua Barat region) Do not yet own a home for the KPR/KBR program. The participant will use their Tapera savings to finance the first home purchase, construction, or repair. Steps to the Tapera Housing Financing Process The participants who meet the eligibility criteria for housing financing can apply for financing options tailored to their specific needs. Here’s a step-by-step guide to the housing financing process: Step 1: Verify Tapera Membership Before embarking on the housing financing journey, ensure you are a registered Tapera member. Visit the website to verify your data and confirm your membership status. Step 2: Select Your Tapera Financing Preference The program provides three housing financing options: KPR, KBR, and KRR. It is essential to carefully select the option that best meets your specific housing requirements. For KPR Identify your desired home location. Gather the required documents, including the KPR Tapera application form, a statement confirming home ownership status, and a home reservation letter from the developer. For KBR/KRR Prepare a detailed Bill of Quantities (RAB) for the home construction or renovation project. Step 3: Submit Your Application to a Tapera Participating Bank Once you have gathered all the required documents, submit your financing application to the participating bank. Bring the following documents: Indonesian identity card (KTP), Tapera Membership ID, salary slip, Annual Tax Return (SPT Tahunan), and bank statement. Entrust Your Payroll Processing with InCorp The introduction of the new regulation mandating monthly salary deductions for the Tapera program necessitates a thorough understanding, particularly in the context of payroll calculations. With over a decade of experience, InCorp Indonesia offers effective and efficient solutions to streamline your business payroll system through our payroll outsourcing services. Complete the form below to connect with our expert consultants, who can address your company’s comprehensive and reliable payroll needs. Read Full Bio Pandu Biasramadhan Senior Consulting Manager at InCorp Indonesia An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.