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Workers, employers mull over challenging Tapera rules in court

Several unions for both employees and employers are thinking of challenging the legal basis and implementing regulations for the Tapera program at the country's top courts, since the government appears set on collecting matching contributions from workers' monthly wages to fund the housing program.

Divya Karyza (The Jakarta Post)
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Tue, June 4, 2024 Published on Jun. 3, 2024 Published on 2024-06-03T12:10:42+07:00

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Workers, employers mull over challenging Tapera rules in court A housing complex build by the Public Works and Public Housing appears in this undated handout photo. (Courtesy of PUPR/-)

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/o:p>Associations representing both employees and employers are looking to take legal action against the public housing savings (Tapera) program as the government insists on maintaining the program despite public outcry.

The Tapera program charges a monthly deposit totaling 3 percent of participants’ income for future homeownership under a government agency, with employees bearing 2.5 percent and the employer 0.5 percent of the deposit.

The program applies to civil servants and private employees, including those that already own a house.

Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani said on Friday that businesses were considering petitioning the Constitutional Court for a judicial review of Law No. 4/2016, the legal basis of the Tapera program.

In its two-pronged legal challenge, Apindo also planned to petition the Supreme Court for a judicial review of the implementing regulations introduced in 2020 and 2024.

“We are looking [to file] a judicial review. If we must, we will go in that direction [together with employees],” Shinta told a press conference in Jakarta on May 31.

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She emphasized that the government should consult both employers and employees and consider their views, and that Apindo would proceed with the legal action if the government remained unmoved in calling for a review of the Tapera program.

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