Rejecting Cut Of Tapera Salaries, Labor Unions Will Hold Big Actions On June 6

Illustration of labor demonstrations (ANTARA)

JAKARTA - The workers strongly reject the policy that requires workers to make 3 percent of their monthly salary discounts as savings for the Tapera Savings of Public Housing (Tapera).

The labor union stated that it would hold a massive action to protest against the policy on Thursday, June 6, 2024. The action of thousands of workers taking to the streets will be centered at the State Palace, Central Jakarta.

"The Labor Party and KSPI will prepare for a major action that thousands of workers will participate in on Thursday, June 6 at the State Palace, Jakarta, with demands to revoke PP No. 21 of 2024 concerning Tapera and revise the Tapera Law," said President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal to reporters, Monday, June 3.

Said Iqbal assessed that 3 percent of the wages of workers did not guarantee the certainty that the workers would get a house. Moreover, according to him, the purchasing power of workers has decreased by 30 percent and the minimum wage is also very low due to the Job Creation Law.

"Within ten to twenty years of participation, workers will not be able to buy a house. Even just for an advance, it will not be sufficient," said Said Iqbal.

Said Iqbal emphasized that the 2.5 percent cut in Tapera contributions that workers have to pay will actually increase the burden on financing their daily needs. He explained that the discount imposed on workers is now almost 12 percent of the wages received.

The pieces, added Said Iqbal, are 5 percent Income Tax, 1 percent Health Insurance contribution, 1 percent Pension Insurance contribution, up to 2 percent Old Age Guarantee contributions.

"Not to mention that if workers have cooperative debts or companies, this will further burden the living expenses of workers," said Said Iqbal.

In addition to holding demonstrations, Said Iqbal said that his party would also file a judicial review lawsuit to the Constitutional Court for Law number 4 of 2016 concerning Tapera and to the Supreme Court for Government Regulation number 21 of 2024 concerning Tapera.