Soft system methodology for maintenance and treatment budgeting for public-rented flats

Abstract

Purpose Public-rented flats in Jakarta Province operated by the Management Unit of Public-Rented Flats (MUPRF) experienced budget cuts for the maintenance and treatment activities during the COVID-19 pandemic that hit Indonesia in the early 2020. Currently, the budgeting scheme of the MUPRF uses the local government’s budget in determining the expenditures of public-rented flat. This papers aims to propose an alternative budgeting scheme for the MUPRF. Design/methodology/approach Soft system methodology (SSM) was adopted to understand the public-rented flats as a whole system, so an alternative budgeting scheme for the MUPRF can be identified and developed. Interviews with an employee of the Department of Community Housing and Settlement of Daerah Khusus Ibukota Jakarta Province were conducted. A rich picture, customer, action, transformation, worldview, owner and environment analyses, conceptual model and a proposed model were developed during the process. Findings Based on the SSM, it is found that becoming a local public service agency, the MUPRF can be more independent and flexible in managing their budget. The income generated by the public-rented flats can be used directly for their expenditure. Research limitations/implications Through the SSM, only a conceptual model is developed, which has not yet been implemented in practice. Future studies need to be carried out to evaluate the feasibility of the conceptual model. Originality/value This research analyses the public-rented flat as a whole system through SSM to identify factors and parties that are involved in the daily activities in public-rented flats to propose a suitable alternative for its budgeting scheme.