3% Mandatory Saving for Tapera Program: Breaking News?

President Jokowi recently issued Regulation of the Government No. 21 of 2024 (“Amendment”), which amends Regulation of the Government No. 25 of 2020 (“Regulation 25/2020”) on the Organization of Public-Housing Savings (Tabungan Perumahan Rakyat – “Tapera”) and which has been in force since 20 May 2024. Various provisions that specifically relate to Tapera participants and that were originally set out under the framework of Regulation 25/2020 were previously analyzed in the following edition of Indonesian Legal Brief: “Implementing Regulation for Tapera Program Finally Issued”. Amongst other areas, Regulation 25/2020 states that required savings under the Tapera program were set at 3% of an employee’s wage or a self-employed individual’s income.[1] Furthermore, Regulation 25/2020 also states that Tapera participants should be employees or self-employed individuals who either have a minimum age of 20 or who, if they are under 20, are married at the time that they register as program participants. Participants encompass the following sectors: 1) Prospective civil servants; 2) Civil servants; 3) Members of the Indonesian National Armed Forces; 4) Students of the Indonesian National Armed Forces; 5) Members of the National Police Force of the Republic of Indonesia; 6) State officials; 7) Employees/workers at state/regionally-owned enterprises; 8) Employees/workers at village-owned enterprises; 9) Employees/workers at private enterprises; and 10) Other types of employees that receive salaries/wages (“Other Types of Employees”).[2] However, it is highly important to note that Regulation 25/2020 have mandated that employers of private enterprises to register their employees to BP Tapera by 2027 (seven years after the promulgation date of Regulation 25/2020).^[3]