Tapera Contributions Can Lower People's Purchasing Power

JAKARTA - Chairman of the Indonesian Retailers Association (Aprindo) Roy Nicholas Mandey assessed that the mandatory contribution to Public Housing Savings (Tapera) could have an impact on decreasing people's purchasing power.

"The answer is to collaborate (between Tapera contributions with people's purchasing power) because the calculation is that whatever is cut will definitely reduce spending, simple theory. Disbursement of spending, consumption will decrease," said Roy at his office, Monday, June 3.

Roy is worried that the decline in people's purchasing power will also have an impact on Indonesia's economic growth. Given, people prefer to hold back their savings.

"Consumption is decreasing. This means that economic growth (growth of economy) will also decrease," he said.

He added that currently global conditions are still very volatile. One of them is related to the rising world oil price.

"This oil price has increased by 2 US dollars, from 83 now 85 US dollars per barrel. If it continues to rise, it will collaborate with oil (domestic)," he said.

In addition, said Roy, Bank Indonesia's (BI) benchmark interest rate still stands at 6.25 percent. According to him, this will have a direct impact on loan interest rates, home ownership loans (KPT), motorcycle installments and cars.

"The burden that occurs will reduce purchasing power," he said.

Thus, Roy asked the government to review the mandatory Tapera contributions. He considered that the obligation to pay would increase the burden on the community in the midst of a global situation that was still volatile.

"In our opinion, Tapera actually needs to be studied and not (implemented) at this time, where the geopolitical momentum is not finished," he added.

The regulation regarding Tapera was signed by President Joko Widodo (Jokowi) on Monday, May 20, 2024, as stated in Government Regulation (PP) Number 21 of 2024 for amendments from PP 25/2020.

Classification of groups that are required to take part in this program, namely ASN, TNI, Polri, BUMN/BUMD workers and private workers.

The regulation states that employers are obliged to pay participant deposits whose obligations are and collect participants' savings from workers.

It is known, the amount of the contribution is set at 3 percent of the salary or wages for Workers Participants and income for Independent Workers Participants. For Workers Participants, it is borne together between the company and employees by 0.5 percent and 2.5 percent, respectively, while Independent Worker Participants bear overall savings.

Participants who are included in the category of Low-Income Communities (MBR) can get benefits in the form of Home Ownership Loans (KPR), Home Building Credit (KBR) and Home Renovation Loans (KRR) with long tenors of up to 30 years and fixed interest rates below market interest rates.

Funds raised from participants will be managed by BP Tapera as savings to be returned to the participants.