MK Rules Workers Not Obliged to Join Tapera
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JAKARTA, investortrust.id — Indonesia’s Constitutional Court rules on Monday, Sept 29, 2025, that workers are no longer obliged to participate in the Public Housing Savings program, a decision that invalidates the core provisions of the 2016 Tapera Law and forces lawmakers to redesign the nation’s housing finance system within two years.
The ruling followed a judicial review filed by the Confederation of All Indonesian Trade Unions. The Court declared that Article 7 paragraph (1) of Law No. 4/2016, which required every worker and self-employed person earning at least the minimum wage to join Tapera, was unconstitutional.
Chief Justice Suhartoyo said the law conflicted with the Constitution and could no longer be legally binding unless restructured in line with the mandate of the 2011 Housing and Settlement Areas Law.
Court Cites Voluntary Principle
In its legal reasoning, the Court stressed that financial relations must be built on mutual trust and voluntary consent. Deputy Chief Justice Saldi Isra argued that attaching a mandatory obligation to the concept of savings contradicted its very nature.
According to the Court, Tapera was neither a tax nor a compulsory levy recognized under Article 23A of the Constitution. Forcing participation turned savings into a coercive contribution, undermining workers’ free will.
The Court further noted that Tapera overlapped with existing financing schemes, creating double burdens for workers, and applied indiscriminately even to employees who already owned homes. Justice Enny Nurbaningsih added that the law’s design focused only on returning contributions at retirement, which failed to achieve its stated aim of expanding access to affordable housing.
As a result, the Court annulled the entire 2016 Tapera Law, while granting the government and parliament a two-year grace period to establish a new framework to prevent a legal vacuum.
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BP Tapera Prepares Alternatives
The Public Housing Savings Management Agency, or BP Tapera, said it respected the Court’s decision and would adapt accordingly. Commissioner Heru Pudyo Nugroho told reporters in Bogor that the agency would explore funding alternatives, including investment projects and expansion of the government’s Housing Finance Liquidity Facility (FLPP).
“We respect the ruling, and we will make sure Tapera can continue to run without burdening the people,” Heru said. He emphasized that the agency would review existing regulations and design voluntary schemes that offered clear benefits to participants.
Heru confirmed that plans to collect mandatory Tapera contributions starting in 2027 were canceled. However, the status of participation for civil servants and state officials remained under review.
Strong Progress in Subsidized Mortgages
Despite the ruling, BP Tapera continued to deliver results in subsidized housing finance. As of Sept 28, 2025, the agency reported that subsidized mortgage disbursements had reached 183,058 units, equal to 52.3 percent of the government’s 2025 target of 350,000 units.
Total financing under the FLPP program stood at Rp 22.72 trillion, equal to $1.39 billion, with an additional 78,658 units still undergoing bank verification. If approved, total realized mortgages could climb close to 256,000 units this year.
Heru delivered the update directly to President Prabowo Subianto at a mass signing ceremony of 26,000 subsidized homes in Cileungsi, Bogor.
The government has set an ambitious target of three million homes in 2025 under Presidential Regulation No. 79/2025, including improving unfit housing and expanding vertical housing developments. Prabowo mandated that 273,200 households should receive financing support through FLPP this year, alongside slum upgrading programs covering nearly 178 hectares annually.