Enhancing Risk Management in Subsidized Housing: A Strategic Approach for Sustainable Development in Indonesia

The development of subsidized housing in Indonesia faces significant challenges, including regulatory complexity, financial constraints, and market uncertainties. This study aims to identify and classify key risks in subsidized housing projects in Serang Regency, Banten Province, Indonesia, and to formulate risk mitigation strategies using ISO 31000:2018 and ISO 31010:2019 frameworks. The research employs a mixed-methods approach, integrating qualitative and quantitative methods. Primary data were collected through semi-structured interviews with 23 developers to identify risks, followed by Probability Impact Matrix (PIM) analysis to assess probability and impact levels. Further, in-depth interviews with five experienced developers were conducted to formulate mitigation strategies. Findings reveal that mortgage approval difficulties, limited FLPP quotas, regulatory uncertainty, and government budget constraints are the most critical risks. To mitigate these risks, strategies such as improving mortgage accessibility, diversifying funding sources, enhancing regulatory adaptability, and optimizing budget efficiency are proposed. The study confirms that subsidized housing risks extend beyond technical factors, emphasizing the need for a systematic and experience-based risk management approach. These insights contribute to improving project sustainability and providing practical recommendations for developers and policymakers in ensuring effective and sustainable subsidized housing programs.