Labor unions are set to open discussions on the Public Housing Savings program, known as Tapera, when President-elect Prabowo Subianto takes office.
The Confederation of Indonesian Trade Unions (KSPI) believes the current administration is unlikely to debate Tapera’s implementation.
“BP Tapera is currently struggling because they are not prepared. Additionally, the majority of the public rejects the Tapera program. We hope to discuss Tapera with Prabowo in October 2024,” KSPI chairman Said Iqbal said on Thursday, June 6, 2024.
Hel is optimistic about discussions with Prabowo due to their shared vision of land sovereignty. He believes the government will play an active role in continuing the Tapera program under Prabowo’s administration.
Said Iqbal speculated that Prabowo would begin preparing land for Tapera housing once in office and that the associated installments would not burden the public. However, he noted that he has not met Prabowo this year.
“So far, there has been no meeting with Prabowo. It’s not feasible for Prabowo, as the Minister of Defense, to discuss Tapera with me,” he said.
Said Iqbal emphasized that the state is obliged to provide housing for the public, in accordance with Article 28H of the 1945 Constitution. He criticized Government Regulation No. 21/2024 on the Implementation of Tapera, arguing that it does not align with this mandate.
He views Tapera as a social security program in the form of housing but finds it problematic that the government is not directly involved in Tapera’s funding.
He believes government intervention through the state budget could reduce house prices by up to 60 percent. However, such intervention must be coupled with increased purchasing power for workers to address the housing backlog effectively.
“The Real Estate Indonesia estimates that the average house price is now Rp150 million (US$9,243). State intervention could lower house prices to Rp 50 million, meaning we could afford monthly installments below Rp 1 million,” he concluded.
