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Labor Party to challenge Tapera law in Constitutional Court

Tempo - June 3, 2024

Daniel A. Fajri, Jakarta – President of the Labor Party, Said Iqbal, has declared that his party intends to contest Law No. 4 of 2016 on the public housing savings (Tapera) to the Constitutional Court. This law mandates the deduction of 3 percent of workers' salaries per month, commencing in May 2027.

"We will soon file a petition for a judicial review of the Tapera Law with the Constitutional Court and the Supreme Court," he said in a written statement on Sunday, June 2, 2024.

The party also planned to stage a demonstration in front of the State Palace on June 6. Said believed that Tapera burdens workers' living costs and is susceptible to corrupt practices.

"We call on the government to revoke the Tapera regulations," he stressed.

Said outlined six points of reasons for rejecting the savings program. First, Tapera fails to guarantee home ownership security for workers. Second, the government is also evading its responsibility by not allocating a budget for Tapera.

Third, Tapera is seen as a burden on the cost of living amidst workers' purchasing power, which is claimed to have fallen by 30 percent, and the low minimum wage resulting from the Job Creation Law. Fourth, the Tapera program is prone to fraudulent activities as there is no precedent for this social policy – the funds stem solely from community contributions while the government acts as the organizer.

Fifth, the savings are compulsory. Sixth, there is a lack of transparency and complexity in the disbursement of Tapera funds, let alone for private workers and the public, particularly contract and outsourcing workers with a high potential for layoffs.

Apart from the Labor Party, the Indonesian Employers' Association (Apindo) has also expressed objections to Government Regulation (PP) No. 21 of 2024 on the Tapera program, which was inked by President Jokowi on May 20. Apindo chairperson Shinta Kamdani said that the program amplifies the burden on both employers and employees amid the rupiah depreciation and weakening market demand.

Source: https://en.tempo.co/read/1875205/labor-party-to-challenge-tapera-law-in-constitutional-cour