A blueprint of RumaKita - Housing Solution by Universitas Indonesia for Hult Global Case Challenge

1. By Habitat for Humanity International
This blueprint is submitted by Universitas Indonesia for Hult Global Case
Challenge 2012 – Housing Track. It offers innovative solution to reach the target
of serving 50 million people, with 10 houses, in 10 years.
Universitas Indonesia
MuhamadImanUsman– Project Manager
AichiroSuryoPrabowo – Government Relations
Rainintha Siahaan – Partnership and Community Development
Windy Natriavi – Finance
Ian Hutomo – Technology and Operation
Coach: Anna Agus

2. By Habitat for Humanity International
“A House is Not a Home, when the Heart is not with It” – Anonymous
Habitat for Humanity International (HFHI) is well-known organization in providing houses for many throughout the
years. With 7 billion and exponentially growing population living in 1 planet, which marks another level of global
challenges, hence a global housing solution is a primary priority that we should think of for the future generation.
Services could be generated either for impairment and new houses. With shortage of spaces, global poverty and
fluctuating cost in building a proper shelter for mankind, one should be able to address this set of complex
problems.
Opportunities to enhance the role and capacity of this organization is wide open, especially to enable them to
transform and scale up for many challenges ahead. Housing sector is unique but complex in a sense that it involves
various numbers of stakeholders and deal with local situation. As the team of Universitas Indonesia have studied,
challenges that HFHI is facing are: (1) Lack of Access to Affordable Houses for benegiciaries, (2) Lack of innovative
business and organization model to allow it to scale up and be sustainable to answer the challenges; (2) Lack of
incentive for relevant stakeholders especially volunteers and masons, to make various project delivery be
sustainable, (3) Less strategy to tie strategic affiliation with potential donor and investor.
Transforming the role of HFHI into housing enabler is the only realistic solution to deliver the challenge of 10 million
houses for many. Transformation works best and feasible when we change the behavior and mindset. Housing
should be seen as a process rather than as results. Thus a very comprehensive tool to transform HFHI’s role and
capacity is a way to go. Universitas Indonesia is proud to propose Rumakita as a concept that suitably address the
aforementioned challenges by creating multi pronged approaches – which in general may entails: (1) Crafting up
innovative business and organization model for HFHI to scale up and sustain best practices (2) Extending hands to
strategic partnership and investment to be able to finance solution; (2) Sustaining the number of strategic
partnership to donate, finance and support various project; (3) To engage relevant stakeholders should be able to
define its organization as a benchmarking organization Universitas Indonesia is proud to address challenges that
Habitat for Humanity International through a breakthrough solution, without compromising HFHI’s reputation,
philosophy and best practices. By transforming HFHI’s position from Housing provider to housing enabler, we can
help HFHI to reach the goal to reach 50 million people (10 million homes) in ten years.
With $1 Million Grants, it will be multiplied through: To build an online platform system – Virtual Matchmaking
Booth; Operational, Administrative and Management Salaries; Business and Community Development; Marketing
and Fundraising. From these activities, we could generate $ 4.748.915 for the 1st year, with an outreach growth of
27% up until 2023., we could serve 198.396 houses in 10 years. We do believe if this solution could work in an
area, it could be replicated and scaled up to broader areas.We are targetting to replicate this in 10 Areas, in 10
years. With this number, we are optimistic that we could serve 17.435.424 houses with 69.741.696 people served
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3. By Habitat for Humanity International
PROBLEM STATEMENT:
“ HFHI needs to deliver 10 million houses in upcoming future, whereas we only have limited access of funds and
capacity to attain the aforementioned numbers”
GOAL:
Transforming HFHI’s role from housing provider into housing enabler, with specific goals as
follow:
 To craft a sustainable business model which able to boost the role and capacity of RumaKitato be the
benchmarking organization for global housing solution by maximizing the engagement, outreach and
cooperation with wider yet relevant stakeholders (i.e public, volunteers, donors, channeling unit, media,
masons, government)
 To scale up business model of Rumakita in housing projects into an accountable, affordable efficient and
trustworthy channeling and distribution unit for housing solutions.
CHALLENGES:
To achieve the goal, currently Habitat for Humanity International is still facing some challenges, but to recap the
main challenges:
a) Lack of strategic model of partnership with donors, volunteers, masons
b) Neglected community development programs
c) Limited channel of distribution unit
SOLUTION:
To achieve the goal, we do believe, that transforming HFHI position from housing provider into housing enabler is
the only solution realistic to deliver 10 million houses by 2020. RUMAKITA is the solution offered to answer the
challenges.
1. Volunteer Development and Management Unit
Throughout the years, volunteers are seen as the HFHI’s primary backbone and brand builder for housing project in
HFHI. To assure and sustain this image, HFHI needs to develop a Development and Management Unit for
volunteers and potential volunteers in general especially to set a benchmark of having abundant qualified and
committed volunteers. Especially with the urgency to deliver projected 10 million homes in near future, hence
making sure that available manpower is sustainable should be one of priority too. This unit should be designed as
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4. By Habitat for Humanity International
attractive as possible to generate more people to join the opportunities to make change over people’s living
(quantity) and potentially bring a learning experience for volunteers on specific skills (quality).
Capacity building and sustainable management for volunteers are investment for securing manpower to help the
global housing problems. To this end, the development and management unit should maximize the function and
skills of volunteers in both construction and non-construction functions. The management will also compile
database of volunteers according to their field of interest, country of origins,etc. By having these two streams of
function and database, HFHI can efficiently allocate these resources accordingly. Volunteers will be optimally
empowered by various housing projects.
As having qualified volunteers is essential in housing project, HFHI needs to conduct a performance assessment to
keep volunteers motivated and professional. Such performance assessment is a tool for HFHI to reward good
performing volunteers.
2. Mason Knowledge and Skill Management Unit
Another biggest concern in ensuring that 10 million standard houses can be delivered as affordable as can be to
the beneficiaries are through havinglocally inept and qualified masons. This relevant stakeholder has been so
minimally addressed in the past, whereas affordable houses according to local standards and available materials
are necessary skills that the masons working with HFHI needs to have under certain housing project. To make sure
that masons are well-utilized, empowered and educated this unit, we need to boost a unit for Mason Knowledge
and Skill Management in the form of capacity building, under the auspices and consultancy of material companies.
Capacity building will work as as certification process for masons will be done in the form of training of utilizing
locally available materials, designing a standard and healthy house and neighborhood. Name of certified masons
will be available on the Virtual Matchmaking Booth.
3. Monitoring and Channel Expansion Unit
As we are held accountable with various strategic partners and donors with abundant donation at stake, ensuring
an efficient pipeline that is easy to be monitored by HFHI is a way to go.Aside from the concern of accountability,
the channel of loan distribution should be expanded and should be made affordable by employing bottom-up
approach for instance: community-based distribution to guarantee payback, ensuring affordability, effective and
trustworthy channel. To champion the principals of effective delivery, accountability and affordability, RUMAKITA will
leverage HFHI partnership with banks and Micro Finance institutions to give communities and small-medium
enterprises. As with bank, HFHI will partner up with selected banks and Micro Finance Institutions for housing to
give out small-medium enterprises loans to potential beneficiaries. HFHI then will help reducing the risks of bank in
lending out loans by giving professional expertise as business consultants to individual beneficiaries. Ideally HFHI
will receive back 0% loan and revolve those funds. Banks will receive the 7-10% p.a and pay out certain fees HFHI (
with lower rate) to HFHI for their work in assisting these companies. But most importantly, consumers will have their
houses and the added income capacity to support the family and their livelihood.
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5. By Habitat for Humanity International
4. Program Outreach and Strategic Partnership
“Optimizing the power of dollar you donated and spent”
RUMAKITA’s website will be equipped with interactive page - The Virtual Matchmaking Booth -which works as
one of HFHI biggest public donation platform, aside from already well-built strategic partnership with loyal
donor. The Virtual Matchmaking Booth displays items representing materials and any kind resourcesand cost
required to finish certain housing and community development project. Resources are comprised of materials
such as, but not limited to: window pane, roof, window, and cements even technical consultancies and
administrative needs. Web visitor will be directed to the interactive page and able to donate their money based
on the price of each materials displayed.People can send every single cent and see where the money goes,
because as potential donors/investors purchase the material, there will be direct improvement in that
particular house.
Here people may choose whether they want to donate, or want to invest. If they want to donate, their donations
will go 100% to the beneficiary. But, if they want to invest, it means they lend their money to the people they
want to help, and the money will be paid back to the donators (investors) in certain amount of times via HFHI.
At the top of the interactive page, we will display a countdown of price required on certain project – as a live
cost required countdown is shown on the page. Anytime a certain housing project is financially covered, the
countdown will be connected to HFHI’s social media pages (i.e Twitter, Craigslist, and Facebook), therefore the
public can easily access and see the development of project finalization in the real time and via real project.
After this, public
Utilization of online platform where people can donate their money for housing is already implemented by HFHI.
People could donate through several means: (1) registering directly on HFHI website;(2) buy merchandises, or
(3) even by playing a game. Since December 2009, Zynga has partnered with HFHI to offer a series of new
goodies for purchase in CityVille. Through the game you donate virtual money through a variety of items
available for purchase, with 100% of the sales going to the Habitat for Humanity program. Through this game,
HFHI attained more than $ 10 million.
With the Virtual Matchmaking Booth, we can leverage outreach of subject and scale of donation by inducing
donor and potential donor through online platform model. The model addresses aspect of psychology of
donation from three angles, which entails:
(1) Easiness of Donating - The option to donate/invest on housing project material is only a click
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6. By Habitat for Humanity International
away
(2) All Kind of Donation Gets monitored at All Times- potential donor can monitor what they donate,
where the money is allocated from this interactive page
(3) Sustainable Donation is Assured through Incentive – This system enables a win-win solution for
both parties – as potential donors in general can get the satisfaction of knowing the allocation of
donation.
With this solution, now, one house can literally built by dozens or even hundreds of people. People build
houses together, and they can celebrate the success together! And it is win-win mechanism to all key
players in this game.
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7. By Habitat for Humanity International
5. Community Development Unit
First, HFHI always carefully select beneficiaries upon the
basis of good-faith, especially when it comes to paying the
housing credit loan gradually to the donators and other
third parties. Secondly, as a housing enabler, Rumakita
will assist HFHI’s capacity of not only crafting a per-unit
housing solution in the future, but also to make sure that
human aspect gets accommodated. Oftentimes, housing
solution is heavily concentrated on building houses,
instead of also paying attention to community
development. Since the standard of living is largely
defined by the quality of livelihood and environment, we
need to develop other aspects of development as well,
which are social and economy. To achieve this, we will establish community development unit as a mean where
people can get capacity and knowledge improvement. Our beneficiaries should payback by contributing through
sweat equity program to build other houses and engage in social activity. Beneficiaries may also choose to increase
their income by joining local economic centre, and also will get capacity building to improve their skills and
knowledge, so they will be financially independent.
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8. By Habitat for Humanity International
Strengths:
1. Composition of team’s background are diverse in terms of fields of interest and capacity,
2. Rumakita is compilation of ideas that are comprehensive and innovative enough to scale up HFHI and
sustain its role and capacity
3. Ideas are compatible with HFHI’s reputation, images and not compromising the already best practices.
Weaknesses:
1. Team has minimum experience in housing sector
2. Involvement of too many stakeholders – albeit normal in housing sector -
Opportunities:
1. Well established brand
2. Sufficient networks to leverage the partnership, inciting volunteers and donors
3. Team members relevant engagement/ possessing networks,
4. The issue of global housing is emerging, and awareness of relating it to the issue of human development is
also raising
5. The spirit of youth volunteerism and non-state actors’ involvement are emerging
6. Government’ support is increasing,
Threats:
1. Share on wallet competition among non-profit organizations in housing sectors
2. Reluctance to payback
3. Unpredictable number of donation we will receive
4. In some countries, the system for online donations are not that familiar
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9. By Habitat for Humanity International
Risk Risk Driver Risk Impact Likeli- Conse- Risk Risk Mitigation Plan
hood quences Level
Failure in Low online Limited fund, 4 2 8 Plan better marketing
fund purchase/donations Low ROI from for online donations,
obtained from internet user, platform building Plan the time for
from online Failure in online online marketing (e.g
platform marketing timing end of the year when
online donations are
high)
Failure in Less awareness from Limited fund, 3 4 12 Prepare a better
fund people to payback, payment systems,
obtained limited beneficiaries’ collaboration with
from income, microfinance, and
beneficiaries integrate beneficiaries
payment with economic and
community
development
activities
Failure in Complexity for people Limited fund, 3 3 9 Better marketing for
fund to donate, Failure in fundrasing, more
obtained marketing and innovative ways to
from promotion, limited promote and
fundraising access and volunteers fundraise for HFHI
to reach more people
Failure in Failure in marketing Limited 2 3 6 Incentives and
gathering and promotion to manpower to do rewards plan for
volunteers attract volunteers fundraising, volunteers, gives
construction, more value added for
unsustainable the existing
number of volunteers as a way to
volunteers Increases branding to
be an HFHI volunteer,
promoting internship
programs, Increases
marketing efforts
Limited lands Backlog of houses are Difficulties in 3 4 12 Plans to build houses
for building accumulated in cities, building house, in satellite cities,
house where access to land high cost of where land is
is difficult building house accessible, but still
near economic center
Difficulties in Lack of awareness Low impact, 2 4 8 Cooperating with
targetting from people about untargeted other partners (MFI
beneficiary HFHI, and and limited customers and volunteers) to
number of partners to give recommendation
reach out more for targeted
beneficiaries beneficiaries
Limited Lack of construction Lack of 4 2 8 Train more volunteers,
volunteers in skills training for manpower in Lists professional
construction volunteers construction, masons ready to hire
high cost to hire
masons
Note:
1 –5 : Very low
6 – 10 : Medium
>10 : High
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