President Jokowi recently issued Regulation of the Government No. 21 of 2024 (“Amendment”), which amends Regulation of the Government No. 25 of 2020 (“Regulation 25/2020”) on the Organization of Public-Housing Savings (Tabungan Perumahan Rakyat – “Tapera”) and which has been in force since 20 May 2024. Various provisions that specifically relate to Tapera participants and that were originally set out under the framework of Regulation 25/2020 were previously analyzed in the following edition of Indonesian Legal Brief: “Implementing Regulation for Tapera Program Finally Issued”. Amongst other areas, Regulation 25/2020 states that required savings under the Tapera program were set at 3% of an employee’s wage or a self-employed individual’s income.[1] Furthermore, Regulation 25/2020 also states that Tapera participants should be employees or self-employed individuals who either have a minimum age of 20 or who, if they are under 20, are married at the time that they register as program participants. Participants encompass the following sectors: 1) Prospective civil servants; 2) Civil servants; 3) Members of the Indonesian National Armed Forces; 4) Students of the Indonesian National Armed Forces; 5) Members of the National Police Force of the Republic of Indonesia; 6) State officials; 7) Employees/workers at state/regionally-owned enterprises; 8) Employees/workers at village-owned enterprises; 9) Employees/workers at private enterprises; and 10) Other types of employees that receive salaries/wages (“Other Types of Employees”).[2] However, it is highly important to note that Regulation 25/2020 have mandated that employers of private enterprises to register their employees to BP Tapera by 2027 (seven years after the promulgation date of Regulation 25/2020).^[3]

Various types of changes have now been introduced under the Amendment. In essence, a total of six articles have been revised, while one article has been added under the Amendment, which addresses various matters that include additional definitions, as well as certain provisions on the calculation basis for employee savings and also the appointment of custodian banks by the Tapera Management Agency (Badan Pengelola Tapera – “BP Tapera”) and so forth. In order to provide a general understanding of this new framework, this edition of Indonesian Legal Brief highlights the new provisions that have now been introduced under the Amendment. Our analysis has been divided up into the following sections:

1. Calculation Bases for Employee Savings;
2. Appointment of Custodian Banks;
3. Management of Housing Financing Liquidity Facility Funds.

Calculation Bases for Employee Savings

The Amendment has introduced no changes in terms of amounts of employee savings, however, the Amendment has now adjusted the calculation basis multiplication factors that relate to amounts of participants’ savings. Said calculations should be performed in line with certain provisions, as summarized below:[4]

Moreover, the Amendment has also now clarified that the calculation basis for determinations of savings amount multiplication factors for self-employed participants will be calculated based on reported income and will be further regulated under a forthcoming Regulation of BP Tapera.[5]

Appointment of Custodian Banks

As background information, BP Tapera will appoint investment managers and custodian banks within three months of BP Tapera commencing operations. The Amendment has now revised certain provisions that specifically relate to the appointment of custodian banks, as summarized in the table below:[6]

Management of Housing Financing Liquidity Facility Funds

The adjustments that have been introduced as regards this matter are summarized in the table below:[7]

Key Takeaways

As Regulation 25/2020 have already provided various provisions in terms of Tapera participations, such as its 3% savings requirements and types and forms of employees fall under the participant’s criteria, employers of private enterprises should now prepare for the mandatory registration of their employees in BP Tapera, which must be performed by no later than 2027.

Source: hukumonline.com