The government has finally enacted the 2016 law on Public Housing Savings (Tabungan Perumahan Rakyat - Tapera) to create a new housing fund (BP Tapera) to be managed by the Tapera Management Agency. BP Tapera is intended to help individuals finance the purchase, construction or renovation of their first home via government-sponsored housing plans. The law will take effect on January 1, 2021, when the fund is expected to begin operation; however, private sector companies will not be required to register with Tapera and contribute to the fund on behalf of employees until 2028, although they may elect to do so voluntarily.
For companies registered with Tapera, the following rules will apply:
Currently, 40% of companies in Indonesia surveyed by Willis Towers Watson provide loans to employees; over half (58%) are housing loans expressed in fixed amounts (ranging at the median from Rp300 million to Rp900 million, depending on employee level) or multiples of base salary (45 to 48 times at the median). We do not expect the implementation of BP Tapera to significantly affect employer practices on company loan programs for the foreseeable future due to the relatively low funding rate and voluntary nature of participation. The PAG-IBIG Housing Fund in the Philippines, established in 1978, has a similar level of funding, but 37% of companies surveyed there still provide loans for employees, though somewhat less so for housing.