The Ministry of Finance continues to evaluate fiscal policy, overcoming the housing backlog

JAKARTA – Director of the Investment Management System of the General Directorate of the State Treasury, Ministry of Finance Saiful Islam assures that he will continue to evaluate fiscal policy for the housing sector.

“We will continue to evaluate. Efforts to address housing arrears still require the presence of finance,” Saiful said at a press conference in Jakarta on Friday, May 31.

For information, the policy is contained in Government Regulation (PP) No. 21 of 2024 amending Government Regulation No. 25 of 2020 on the implementation of austerity in public housing (Tapera) signed by President Joko Widodo (Jokowi).

The regulation stipulates that employees must be participants and contribute 3 percent of their income in the form of Taper deposits.

This provision requires employees to pay housing contributions of 2.5 percent of wages and 0.5 percent of employer contributions.

The Taper contribution applies no later than seven years from its establishment or in 2027.

The basis for the determination of PP 21/2024 is Act No. 4 of 2016 regarding Tapera.

The Taper Management Agency (BP) was therefore appointed to address the home ownership arrears through a savings program for participants.

Saiful said the Taper program was agreed upon by the government and the House of Representatives (DPR) in 2016.

This policy therefore has nothing to do with current policy and state revenues.

“We want to make sure that the Taper program is not a new program, which is why this housing program was established in 2016,” he explained.

Saiful said the Tapera Management Agency (BP) has implemented three fund management programs since its official establishment as required by Tapera Law No. 4 of 2016.

The first is the BP Tapera Working Capital Fund provided by the government under the 2018 State Budget in the amount of IDR 2.5 trillion, which is intended to cover the operational costs of BP Taper’s various programs and investments.

In addition, the second part came from the asset funds of the Housing Savings Advisory Agency of the Civil Service (Bapertarum-PNS), which were transferred to BP Tapera in 2018 in the amount of Rp 11.88 trillion. Because Bapertarum-PNS ceased to operate following the issuance of Law No. 4/2016, which was then continued by BP Tapera.

“The ex-Bapertarum-PNS ex-civil servant (ASN) participant measures have not yet been continued as no regulation has been issued by the Minister of Finance (PMK),” Saiful explained.

This was followed by the third, covering the period from 2010 to the first quarter of 2024, the total funds for the Housing Finance Liquidity Facility (FLPP) received by BP Taper reached Rp 105.2 trillion.

“In fact, APBN is allocating a portion of the FLPP investment (to BP Taper) every year, at least until 2024, which is intended to benefit low-income earners (MBR) in the form of affordable homes,” he added. he said.

According to Saiful, the government is actually helping to increase funding to ensure housing affordability through the FLPP program.

“Meanwhile, in Tapera, NIK enters deposits according to the address and history of each of these funds,” he said.

Funds raised by BP Tapera will be used to provide Tapera Home Ownership Loans (KPR) or Tapera Home Building Credit (KBR) to people who do not already own a home.

Meanwhile, people participating in the Taper program who already own a home will be able to take their savings when they retire.

Saiful added that the government still has several other fiscal programs aimed at overcoming the debt arrears problem.

For example, Regulation of the Minister of Finance (PMK) No. 120/2023 on Value Added Tax incentives for Tapak houses and government-financed residential premises (PPN DTP) ranging from 50% to 100% for apartments with the highest sales price of IDR 5 billion.

Then in the PUPR Ministerial Regulation No. 11 of 2023 on the provision of administrative fee assistance (BBA) worth IDR 4 million per house for low-income people (MBR).

In addition, housing support is provided to the poor under Integrated Simple Homes (RST), namely tax incentives of Rp. 20 million, coordinated by the Ministry of Social Affairs.

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