Real Estate Indonesia (REI) Batam has expressed concerns that the upcoming Tabungan Perumahan Rakyat (Tapera) housing program, set to be implemented in 2027, may not effectively address the housing backlog in Batam, where 40% of the population still lacks proper housing.
The Tapera program, a national initiative designed to help Indonesian workers afford homes through managed savings, is being scrutinized by local real estate leaders and financial institutions for its feasibility and implementation strategy in Batam.
Robinson Tan, Chairman of DPD REI Batam, suggests that while Tapera might expand the market for subsidized housing, its current model and operational approach require significant evaluation to truly benefit Batam’s unique demographic and economic conditions.
One of the major obstacles identified is the banking sector’s reluctance to ease mortgage (KPR) conditions for Batam’s substantial contract worker population, with only a few banks currently accommodating these workers under the Tapera scheme.
Trust in government-managed funds is low, exacerbated by high-profile corruption cases. This skepticism extends to the management of Tapera funds, which are anticipated to be substantial but require transparent and professional administration to gain public confidence.
Robinson notes that similar programs have succeeded in Singapore and Malaysia, where national cooperation on housing issues is strong. In contrast, Indonesia struggles with program adoption and effectiveness, highlighting the need for a tailored approach to local conditions.
Read More: Batam Workers to Protest Against Mandatory Housing Savings Program
The Association of Indonesian Employers (Apindo) in Batam also opposes the implementation of Tapera contributions, arguing that it adds to the already significant fiscal burdens on employers and workers, which include various mandatory social security and health insurance contributions.
The challenges faced by Batam in implementing national housing schemes like Tapera may serve as a case study for other regions in Southeast Asia. Effective housing policies are crucial for regional stability and economic growth, impacting not just locals but also foreign investors and workers in the region.
Experts and industry leaders in Batam are skeptical about the effectiveness of the national Tapera housing program scheduled for 2027, citing concerns over its impact on the local real estate market and the broader economic and social landscape.
