Indonesian Workers Officially Submit Judicial Review of Law 4/2016 concerning Public Housing Savings

ACV-CSCIASIA.ORG, JAKARTA – The Confederation of All Indonesian Trade Unions (KSBSI) has officially submitted a Judicial Review to Law 4/2016 concerning Public Housing Savings (TAPERA) to the Constitutional Court of the Republic of Indonesia.

The registration of the Judicial review application was accompanied by a national TAPERA talk action which was held nationally centered in the Patng Kuda area of ​​Jakarta on Tuesday (09/07/2024).

Quoting the release issued by KSBSI that the enactment of PP No. 21 of 2024 concerning Amendments to PP No. 25 of 2020 as a derivative of the Tapera Law has required all private workers to have their salaries cut by 3 percent, where from that value, workers’ wages will be cut by 2.5 percent and the remaining 0.5 percent of the deduction will be borne by the entrepreneur/employer.

KSBSI believes that the wage cuts only add new burdens to workers amidst economic difficulties and low minimum wage increases. The TAPERA Law is also a denial of the government’s responsibility to provide adequate and cheap housing for citizens.

Seeing that the situation and conditions of workers’ wages in Indonesia are still far from adequate and their income is very limited, it would be very unreasonable for the government to force the TAPERA Law into effect in the next two years, namely 2027. That the TAPERA Law No. 4/2016 violates the people’s constitutional rights to receive fair and adequate compensation and treatment in employment relationships for the following reasons:

  1. Wages are still small, not yet reaching decent living needs (average IDR 2.9 million)
  2. Workers and entrepreneurs are required to pay quite large social security contributions (workers 4% & entrepreneurs 11.74%)
  3. The Tapera program overlaps with the BPJS employment program
  4. Many workers already own houses in installments
  5. PKWT work relationships can be laid off at any time
  6. Layoffs are rampant due to many companies closing and struggling, and the ease of layoffs in the job creation law
  7. The TAPERA Law is discriminatory (benefits)
  8. The TAPERA Law imposes a burden on workers to bear the burden that should be the burden of the Government to finance the poor
  9. High inflation

For the reasons above, DEN KSBSI submits the following demands:

  1. Reject the implementation of the TAPERA Law and its derivative regulations;
  2. Demand that the Government carry out an open and transparent dialogue with stakeholders regarding policies for implementing public housing development without burdening workers/labourers through mandatory savings;
  3. Demand that the government implement ILO Recommendation Number 115 of 1961 concerning Workers’ Housing;