The government has revised the regulations pertaining to housing ownership, specifically those pertaining to the Public Housing Savings (Tapera) initiative. Previously, Tapera was regulated by Law No. 4 of 2016 concerning Public Housing Savings and Government Regulation No. 25 of 2020 concerning Tapera. The target participants were civil servant workers (PNS), informal self-employed workers, State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and Village-Owned Enterprises (BUMDes). Subsequently, during the implementation period between 2022 and 2023, the target population was expanded to include members of the Indonesian National Police (TNI) and the Indonesian National Armed Forces (TNI). In 2024, the government plans to extend the program to private employees.
Before proceeding, it is helpful to gain a general understanding of public housing savings. This can be achieved by consulting official government regulations and other reliable sources.
As stated on the official BP Tapera page, Tapera, or the Public Housing Savings Program, is a periodic deposit made by participants that can only be utilized for housing finance or returned along with the results of fertilization after participation ends (Article 1 PP no. 25 of 2020).
Furthermore, the term “Tapera participant” encompasses all Indonesian citizens (WNI) and foreign citizens (WNA) who have obtained a visa with the intention of working in Indonesian territory for a minimum of six months and have made a deposit. This deposit is a periodic payment made by the participant or their employer.
The purpose of Tapera can be summarized as follows:
- To facilitate home ownership
This program encourages people with middle to lower incomes to make periodic payments.
- To promote sustainable housing development
To generate long-term low-cost funding for housing development to facilitate the growing demand for affordable housing.
Tapera payment amount
Based on government regulation number 21 of 2024, the amount of participant deposits or Tapera contributions is 3% of the salary of worker participants and income for self-employed participants. For participants who work for employers, deductions are charged 3%, namely 0.5% paid by the employer and 2.5% paid by the worker himself. Meanwhile, the amount of savings for independent worker participants is fully borne by workers at 3%.
| employee | 0,5% paid by employer, 2,5% paid by employee |
| freelancers | 3% paid by freelancer |
Tapera management
Quoted from the BP Tapera page that Tapera management is carried out by a legal entity called the Tapera management Agency (BP Tapera). Tapera management includes mobilizing Tapera funds, fertilizing Tapera funds and utilizing Tapera funds.
Tapera financing products
There are four Tapera financing products, namely
- Tapera home ownership credit (KPR Tapera)
Tapera public housing credit (KPR) is a financing product for the Community. KPR Tapera has a long tenor and provides financing facilities with adequate ceilings and low interest rates of 5% through conventional and sharia financing schemes. The ceiling provided for KPR with KPR limit is in accordance with the repayment capacity set by the implementing bank or RPC (repayment capacity).
- Tapera home renovation credit (KRR Tapera)
Home renovation loans are intended for first home improvements with a tenor of up to 10 years and no down payment. Another advantage is that the interest rate/margin is fixed until it is paid off at 5%.
- Tapera home building loan (KBR Tapera)
KBR is used for the purpose of building the first house on private land. It has a tenor of up to 20 years, no down payment and a fixed interest/margin rate until paid off of 5%.
Step 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 set by step guide:
- Verify Tapera membership
Before embarking on the housing financing journey, ensure you are a registered Tapera member by visiting the website to verify data and confirm membership status.
- Select your Tapera financing preference
The program provides three housing financing option, KPR, KRR and KBR. It is essential to carefully select the option that best meets the 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 KRR/KBR
- Prepare a detailed bill of quantities (RAB) for the home construction or renovation project
- Submit application to a Tapera participating bank
Once you have gathered all the required documents, submit the financing application to the participating bank by bringing the following documents such Identity (KTP), Tapera membership ID, salary slip, annual tax return (SPT Tahunan) and bank statement.
Tapera and the impact for economic growth
The introduction of Tapera has the potential to stimulate economic growth, with significant multiplicative effects on other sectors such as construction, building material manufacturing, and financial services. This increase in economic activity can generate more jobs, increase people’s income, and ultimately increase purchasing power in the housing or property sector. Thus, the Tapera program not only helps individuals to own a home, but also contributes to broader economic growth. It can also encourage both domestic and foreign investors to invest in housing finance funding.
Tapera policy is a legal obligation for all companies operating in Indonesia. If you are interested in expanding your business to Indonesia but lack experience in the Indonesian market, you may wish to consider establishing a representative office. With extensive experience in assisting companies to enter the Indonesian market, and a significant number of clients who have already entrusted this service to Market Entry Indonesia, we are well-placed to assist you in establishing a representative office that meets your specific requirements.