Case Studies

PT Holcim Indonesia: Solusi Rumah - Affordable Housing in Indonesia

Project description

Indonesia, often struck by natural disasters, faces a backlog demand of six million homes resulting in an urgent demand for safe, sustainable and affordable housing solutions. Solusi Rumah, Holcim Indonesia’s innovative franchise concept, offers exactly that and more: a one-stop solution for customers that is tailored to their needs, affordable, sustainable and can be built in less than four weeks.

Holcim Indonesia’s main market, the island of Java, occupies 7% of Indonesia’s available land, and is home to 55% of Indonesia’s population in thriving cities and industrial estates. In 2006, the Indonesian Group Company identified a backlog of six million homes throughout the country, the highest housing backlog being situated on the island of Java.

Objectives

Addressing this backlog demanded an innovative solution. Holcim Indonesia was able to leverage experience gained in rebuilding Aceh after the devastating 2004 earthquake and tsunami and the Jogjakarta earthquake of 2006. An approach was developed for the rapid construction of earthquake-resistant, sustainable modular houses for low income families, which became the Solusi Rumah (“Housing Solution”) project. Coupled with an innovative franchise system launched in December 2006, the program benefits purchasers, retailers, concrete product manufacturers, entrepreneurs and individual masons. Critically, this model contributes to the concept of sustainable construction through a business model designed to stimulate enterprise in the local building trade.

Activities

While conventional Indonesian houses are built slowly over time using clay bricks and casuallymixed mortar, Solusi Rumah sells pre-cast concrete elements, which are both stronger and more cost-effective. It offers a one-stop solution to the Indonesian home builder. Unique value-added services satisfy the customer’s needs in many ways:

  • The packages include architectural services, supply of building materials and access to trained contractors, banking services for housing mortgages as well as construction and property insurance.
  • By using the Solusi Rumah software the customers can see the plan of their house and accurately estimate material costs in real time.
  • Families with a basic monthly income of USD 150 have access to a 21m2 to 54m2 home at the cost of USD 3’000 to USD 7’500.
  • A variety of low-income house designs is available. They allow for future expansion and can be tailored to the customer’s needs.
  • Any of the trained masons of Holcim Indonesia’s network can build a low-income house in less than four weeks.

Results

It is remarkable what Solusi Rumah has achieved:

  • 33 schools and 60 institutional buildings have been completed using the Solusi Rumah model.
  • 1’500 residential buildings have been constructed.
  • 10’000 masons have been trained in Holcim Indonesia’s Mason Academy.
  • 30 jobs are created per CPM outlet.

Expansion plans are ambitious: On Java, 75 CPM and 400 Retail Solusi Rumah franchise outlets are planned to be operating and 2’500 homes to be built by the end of 2011. But first and foremost, Solusi Rumah raised awareness for sustainable and affordable building practices. Families living in Solusi Rumah houses profit from the high quality and durability of the houses as well as much better earthquake resistance.

Status: September 2011