Government Prepares Revision of the Tapera Law

The Government is preparing a revision to Law No. 4 of 2016 (“Law 4/2016”) on Public Housing Savings (Tabungan Perumahan Rakyat –  “Tapera”). This step follows a decision of the Constitutional Court (Mahkamah Konstitusi – “MK”) which declared the Tapera Law to be contrary to the 1945 Constitution of the Republic of Indonesia (“UUD 1945”).

“Because it was declared conditionally unconstitutional, we still have two years to rectify it. Hopefully, it can be done sooner,” said Supratman Andi Agtas, the Minister of Law.

Housing sector securitization constitutes one of the key points of amendment in the proposed revision to Law 4/2016. The discussion of the academic paper will involve various parties, including experts in housing finance. The regulation will later be discussed concurrently with the Housing Bill (Rancangan Undang-Undang Perumahan), which has been included in the 2026 National Legislative Program (Program Legislasi Nasional/Prolegnas).

“We have indeed anticipated this together with the Minister of Housing and Settlement Areas. Since there is a Constitutional Court decision, the Housing Law will be discussed concurrently with the Tapera Law,” Supratman added.