CELIOS: 44% of Equity Investment Enters the SBN, Can Be Used for IKN

Participants' savings in the People's Housing Savings Program (Tapera) primarily function as personal savings and simultaneously as a "cross-subsidy" fund to finance housing needs for low-income communities.

However, a portion of participants' savings is also invested by the Tapera Management Agency (BP Tapera), including through State Bonds (SBN).

Based on the *Tapera Program Management Report* processed by the Center of Economic and Law Studies (CELIOS), in 2022, 46.62% of BP Tapera's managed funds were invested in corporate debt securities, and 44.75% went into SBNs.

These SBNs are investment instruments issued by the Indonesian government to finance the State Budget (APBN).

"Therefore, the claim that Tapera has no connection to the APBN is incorrect," stated the CELIOS team in their report, *Tapera for Whom?* (June 2024).

"The government is indeed encouraging the purchase of SBNs through the government's right hand in the financial market. Various state-owned investment management institutions are being asked to increase their investment in SBNs, including Tapera," they continued.

Considering the significant portion of Tapera participants' savings invested in SBNs, CELIOS believes these funds could be used for various government programs, including the construction of the Nusantara Capital City (IKN).

"With a target of Rp160 trillion in SBN issuance in 2024, 37 percent could be fulfilled solely from BP Tapera," said the CELIOS team.

"Its use would not be limited to housing, but could be used for government programs ranging from the construction of IKN to free lunches," they stated.

In response to this, CELIOS recommends that the government prioritize the construction of people's housing.

"Compared to building IKN, it is better to allocate some funds for providing decent housing for the community, especially since the construction of IKN is still predominantly funded by the APBN," said the CELIOS team.