Observer: Workers' Salary Must Increase by 8% If There is Tapera Contribution

Observer: Worker's Salary Must Increase by 8% If There is Tapera Contribution

Dream - Housing Savings Contribution for the People's Housing Savings (Tapera) will be implemented starting in 2027. Economic Observer from the Indonesia Strategic and Economic Action Institution (ISEAI), Ronny P Sasmita, said that the government must increase workers' salaries for the contribution.

Ronny explained that in the next 2 years, the government must establish a significant increase in workers' wages. For example, the average increase in the Provincial Minimum Wage (UMP) is 8 percent per year.

"Before the deductions are implemented, the government needs to consider raising the minimum wage by a maximum of 8 percent consecutively for two years until 2027, so that after the deductions are applied, workers' income will actually increase significantly and not be too affected by the new deductions."

"ungkapnya dikutip dari Liputan6.com, Selasa, 4 Juni 2024." translates to "he said as quoted from Liputan6.com, Tuesday, June 4, 2024."

"To be known, workers will be subject to a deduction of 2.5 percent, then 0.5 percent by the employer. The hope is that if workers' salaries increase, Tapera deductions will not erode the purchasing power of the community. In addition to deductions in other sectors, besides Tapera contributions."

"Not only about wages, Ronny emphasizes the need for an audit step to be carried out on its management body, in this case, BP Tapera. According to him, the body must explain to the DPR its working methods and work plans related to the management of its funds. 'So that the funds will not be misused and invested recklessly, like some pension funds which, according to the Minister of State-Owned Enterprises, have a corrupt smell,' he said."

"Previously, Ronny said that mandatory contributions like Tapera are indeed considered to be a solution for workers to have housing. However, worker wages in Indonesia are still too low, so it is considered to be burdensome."

Ronny said the Tapera contribution model could succeed in Singapore. This could improve the homeownership rate for workers. In fact, Singapore is now one of the countries with the highest homeownership rates in the world. "If we look at Singapore's CPF (Central Provident Fund), the mandatory contribution for housing does indeed encourage increased homeownership," said Ronny.

Although, the similar concept does not necessarily mean it can be successfully implemented in Indonesia. Considering the fundamental income comparison between workers in Indonesia and Singapore.

"However, the problem is our housing backlog occurs due to low demand caused by our workers' very low income standards. Unlike Singapore, where workers' salaries are among the highest in the world. So it's not an apple to apple comparison."

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