Mandatory Public Housing Savings for Employees

On May 20, 2024, the Government issued Government Regulation No. 21 of 2024 which amends Government Regulation No. 25 of 2020 dated May 20, 2020 on the Implementation of Public Housing Savings (collectively, the “Government Regulation”). The Government Regulation is the implementing regulation of Law No. 4 of 2016 dated March 24, 2016 on Public Housing Savings (In Bahasa Indonesia, Tabungan Perumahan Rakyat or “Tapera”).

The Tapera is a program created by the Government for the organization of a housing and savings program for low-medium income employees who wish to purchase affordable housing. The Tapera is administered by the Public Housing Savings Management Agency (in Bahasa Indonesia, Badan Pengelola Tabungan Perumahan Rakyat or “BP Tapera”).

In this Newsflash, we will specifically discuss the Tapera provisions from the perspective of private employers (i.e., other than the Government) and private employees. We set out below the key points of the Government Regulation.

Subject of Tapera

The Government Regulation applies to (i) Prospective Civil Servants, (ii) Civil Service Employees, (iii) Indonesian National Armed Forces Soldiers, (iv) Indonesian National Armed Forces Cadets, (v) Members of the Indonesian National Police, (vi) State Officials, (vii) State-Owned Enterprises Employee, (viii) Regional-Owned Enterprises Employee, (ix) Village-Owned Enterprises Employees, (x) Private Employees, (xi) Foreign Nationals working in Indonesia for a minimum of six months, and (xii) Self-Employed Individuals.

The Tapera is mandatory for every private employee who is at least 20 years old or married and earns at least the minimum wage. Employers are required to register their employees as participants of the Tapera program with BP Tapera at the latest on May 20, 2027.

Tapera Contributions

The amount of the Tapera contribution for participants is determined by a specific percentage of their reported monthly salary for employees. According to the Government Regulation, the rate of Tapera contribution is 3%, with 0.5% borne by the employer and the remaining 2.5% borne by the employee. This means that every month, an employee’s salary will be deducted 2.5% and an employer shall contribute 0.5% for the Tapera.

The employer is responsible for collecting and submitting the Tapera contribution to BP Tapera no later than the 10th day of each month.

Utilization of Tapera

The Tapera is used to finance participants’ housing need which includes (i) home ownership, (ii) home construction, and (iii) home improvement.

The Government Regulation stipulates that in order to utilize their Tapera savings, participants must (i) be a Tapera participant for at least 12 (twelve) months, (ii) belong to the low-income group, (iii) not yet own a house, and/or (iv) use their Tapera savings for financing their first home.

Obligation of Employers

In relation to the Tapera, the Government Regulation provides certain obligations for the employers. Such obligations include: (i) registering employees as participants, (ii) collecting the Tapera savings of the employees through salary deductions; (iii) depositing the Tapera savings for which they are responsible, and the employee’s Tapera savings accompanied by a detailed breakdown of the Tapera savings payments within the designated timeframe, (iv) updating data of the employees related to the Tapera membership; and (v) maintaining comprehensive records of the Tapera savings payments for which they are responsible, as well as those of the employees.

Termination of Tapera Membership

The Tapera membership may be terminated due to several reasons, including: (i) the retirement of employees, (ii) reaching the age of 58 (fifty-eight) years for self-employed individuals; (iii) the participant’s passing away; or (d) an employee who does not meet the criteria as a participant for 5 (five) consecutive years.

Participants whose membership is terminated are entitled to a refund of their accumulated Tapera. The refund will be processed by BP Tapera and must be refunded no later than 3 (three) months after the membership termination.


Employers who do not register their employees as Tapera participants and/or who do not pay or are late in paying Tapera contributions may be subject to administrative sanctions, including (i) written warnings, (ii) administrative fines, (iii) public disclosure of non-compliance, (iv) suspension of business licenses, and/or (v) revocation of business licenses.



Please contact Johannes C. Sahetapy-Engel (, Thomas P. Wijaya (, or Azzahra Saffanisa S. ( for further information.



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