Solusi Rumah - Affordable Housing in Indonesia

Indonesia's island of Java, often struck by natural disasters, faces a backlog demand of six million homes resulting in an urgent demand for sustainable, affordable housing solutions. Solusi Rumah, Holcim Indonesia's innovative franchise concept, offers exactly that and more: a one stop solution for the customer that is tailored to its 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.

Contributing to solving this difficult situation demanded for a special solution. Holcim Indonesia responded to the challenge by providing earthquake-resistant, sustainable modular houses for low- and middle-income families through the Solusi Rumah ("housing solution") project. The innovative franchise system, which was started in December 2006, involves and helps to empower retailers, concrete product manufacturers, entrepreneurs and individual masons. Its implementation is still ongoing.

Everything for an affordable home

While by convention Indonesian homes are built and renovated in a gradual way using small amounts of cement, Solusi Rumah sells pre-cast concrete elements, a much more cost-efficient method. It offers a one-stop solution to the Indonesian home builder. Its unique and comprehensive services satisfy the customer's needs in many ways:

  • The packages include architectural services, building materials, labor, project management and construction consultancy as well as banking services for housing mortgages.
  • By using the Solusi Rumah software the customers can accurately calculate material costs in real time.
  • Families with a basic monthly income of US$ 150 have access to a 21m2 to 65m2 home at the cost of approximately US$ 120/m2.
  • A variety of affordable 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 an affordable house in less than four weeks.

Closing the gap

It is remarkable what Solusi Rumah has achieved only until today: 30 schools and 60 institutional buildings have been completed using the Solusi Rumah model; 300 residential buildings have been constructed; 5000 masons were trained in Holcim Indonesia's Mason Academy; 30 jobs are created per outlet. Expansion plans are ambitious: On Java, 288 outlets are planned to be opened and 1073 homes to be built until end of 2009.

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 of the houses that are more durable and provide much higher earthquake resistance.