REI Chair Suggests Government To Copy Singapore's Concept Of Managing Tapera Funds

JAKARTA - Chairman of the DPP Real Estate Indonesia (REI) Joko Suranto advised Indonesia to imitate Singapore's concept of managing people's housing funds.

Currently, Singapore has a Central Provident Fund (CPF) institution that not only manages housing supply funds, but is integrated into one account with other social security, such as pension funds, health facilities and children's education and life insurance for workers.

It is known that Joko is currently attending a meeting of property industry players around the world or the FIABCI World Real Estate Congress in Singapore from 27-31 May 2024. He claimed to have discussed with Singapore's National Development Minister Indranee Thurai Rajah about how the country manages housing funds.

"Singapore handles housing development for their people, including how to manage independent, integrated (unified) housing funds and maintain accountability," Joko said in his official statement, quoted Thursday, May 30.

Joko explained that CPF is mandatory for every Singaporean citizen and is managed by the government.

The contribution scheme is supported jointly by workers, employers and the government.

So that the public only needs one account for all social security facilities and the contributions are also not separated.

According to him, through an integrated social security system, all the needs of the people from birth, school, work, retirement to death have been guaranteed and handled properly.

In addition, the payment of contributions which only minimizes overlapping dues once will certainly help ease the burden on the community.

"People are happier and their purchasing power has not decreased," he said.

For your information, the Ministry of National Development of Singapore is responsible for planning, managing and building public housing.

Including, rental housing, management and standard improvements in the realestate agency industry and assigned to the development and management of green space, recreation infrastructure and rejuvenation of old areas.

Responding to the many pros and cons regarding the People's Housing Savings (Tapera) contribution of 3 percent, Joko assessed that the government's policy must have been carefully considered.

However, the aspirations and objections of workers and employers also need to be heard.

He saw that this housing financing program had a positive impact on the housing industry.

According to him, the government must already have a study and related consideration study.

Moreover, Joko continued, the economic situation and people's purchasing power are also not doing well, so this burden must also be taken into account.

However, Joko is more aware of the problem of transparency in the management of Tapera contributions in the future.

"Transparency in risk management and management is absolutely needed, because the funds managed are owned by the community," he said.

According to Joko, the current big rejection in addition to the economic reasons of the community who have not recovered after the pandemic, one of which is also due to the low public trust in the savings fund management system or insurance in line with the emergence of many legal cases involving community fund management agencies.

As a solution, he continued, REI proposed and encouraged the government to implement the unification of social security contributions for the community as well as CPF in Singapore. So that not much contribution is charged to the people and its supervision is more effective.

For your information, the government has officially issued Government Regulation (PP) Number 21 of 2024 concerning Amendments to Government Regulation Number 25 of 2020 concerning the Implementation of Public Housing Savings (Tapera) on May 20, 2024.

The regulation stipulates that the pay cut of workers, private employees and independent workers is 3 percent per month. The Tapera participant contribution is paid in details of 0.5 percent by the employer and 2.5 percent borne by workers.

Especially for independent workers, the dues are paid independently.

Participation registration includes cutting workers' salaries must be done no later than 2027.