Advice for the Minister of Public Housing

GRC’s Perspective on Addressing the Target of 3 Million Affordable Homes

writen by Yuliasman Chaniago

It seems the Minister of Public Housing (Menpera) is being given a headache by his subordinates, so much so that he had to bang the table to express his disappointment because the letter that had been signed on October 22nd for the Attorney General (who is only a pole throw away from the Kemenpera office) only arrived on October 28th or 4 working days later. Even though the letter in question is considered important, related to one of the strategic steps in realizing the 3 million affordable housing program, namely a request for support from the Attorney General to provide / sell cheaply the assets of corruptors that have been confiscated to be used as land for the construction of affordable housing projects.

Last week, the Minister received a standing ovation for his groundbreaking affordable housing program, using his own company’s land and partnering with conglomerates to build the project. He also held a groundbreaking ceremony in record time. Even Prof. Jimly Ashidiqie (a Muslim scholar and former Chief Justice of the Constitutional Court) expressed his praise and appreciation. This is part of President Prabowo Subianto’s ambitious plan to build 3 million affordable homes. Many anti-corruption activists raised eyebrows when they saw the Minister’s proposal: how could personal assets be mixed with state programs and assets?

Finally, he explained that the company’s land was donated to the state. And the issue was resolved. Was it completely resolved? Let’s examine this further.

Actually, there’s no need to be angry when leading. Anger is not the same as being firm. What’s needed in leadership is firmness. Similarly, there’s no need to rush the implementation of the 3 million housing program, as this is no easy task and requires careful consideration. 3 million homes over a five-year period means 1,645 homes per day. Can this be achieved with the model you’re proposing? Let’s do the math. With your personal land grant of 2.5 hectares and using a Basic Building Coefficient (KDB) of 60%, your land can only provide 250 homes (assuming a land plot size of 60 m2), or just 6.5% of your daily target. How many more million hectares of land can you afford to donate?

So, what should you do? First, you must understand Governance, Risk Management, and Compliance, and utilize them optimally. The biggest part of governance is defining the business model, which includes establishing strategy, assigning authority and accountability, and establishing targets. The most important part of risk management is mapping potential obstacles and disruptions you’ll face and formulating risk treatment for them.

Redesigning a business model is no easy task. You’ll need to sit down calmly with your senior leaders, who undoubtedly have more experience managing subsidized housing than you (but perhaps aren’t experts when it comes to delivering mail). If you’re a good leader, you’ll be able to tap into the potential of your senior leaders. This requires a friendly approach, not a hostile one.

We all know that the old business model produced few affordable housing projects under the previous administration. This doesn’t mean you have to completely abandon your old business model, but you can make improvements and enhancements to give it greater leverage for your performance. While it’s certainly possible to develop a new business model, as you did with land grants and conglomerate assistance, this new business model also requires establishing a strategy, delineating authority and accountability, and setting clear targets for each stakeholder. This isn’t a job that can be completed in a week or two (unless you have the full support of a super team).

The mail delivery issue arose because you didn’t define who was responsible for delivering the mail and how they should achieve their performance targets. If you did this, there’s no need to get angry; simply consult your outgoing mail book and you have the authority to at least transfer anyone who isn’t supporting your work. However, first, ensure you’ve provided adequate facilities for the mail delivery staff. Could it be the same people who built it? If you’re using CSR (Corporate Social Responsibility) funds, there are CSR regulations that must be complied with. And don’t let the funds used come from activities not permitted by applicable law.

You don’t need to feel alone in the Ministry of Public Housing or lack internal support. You simply need to be calmer and more mature. Maturity is demonstrated by the ability to control your emotions and focus on your assigned functions and authority. You’ve only been in office for a few days, and you still have a long way to go. The ministerial level should no longer be simply about seeking sensation and publicity. You have the power to take more strategic action, something that can change the face of this country. Amen.

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