Journal of Engineering, Project, and Production Management, 2025, 15(4), 2025-121

Risk Mitigation Based on ISM-MICMAC Method for Subsidized Housing Development in Construction Stage

I Gusti Agung Ayu Istri Lestari¹, Dewa Ketut Sudarsana², I Nyoman Yudha Astana³, and Anak Agung Gde Agung Yana⁴

¹ Doctoral Researcher, Department of Doctoral Engineering Science, Udayana University, Jl. Raya Kampus UNUD Jimbaran Bali 80361, Indonesia, E-mail: lestari.2291011001@student.unud.ac.id (corresponding author).
² Professor, Department of Doctoral Engineering Science, Udayana University, Jl. Raya Kampus UNUD Jimbaran Bali 80361, Indonesia, E-mail: dksudarsana.unud.ac.id
³ Associate Professor, Department of Doctoral Engineering Science, Udayana University, Jl. Raya Kampus UNUD Jimbaran Bali 80361, Indonesia, E-mail: astana_yudha@unud.ac.id
⁴ Associate Professor, Department of Doctoral Engineering Science, Udayana University, Jl. Raya Kampus UNUD Jimbaran Bali 80361, Indonesia, E-mail: agungyana@unud.ac.id

Project Management

Received June 3, 2025; revised July 22, 2025; accepted July 23, 2025

Available online October 6, 2025

Abstract: The development of subsidized housing, which includes a construction process, is inseparable from risks that can hinder development and cause losses. Risks need to be managed and followed up properly and in a structured manner. This study presents a risk mitigation hierarchy for the development of subsidized housing during the construction period. The risks mitigated are major risks that have been analyzed in previous studies, specifically during the construction stage. The risk mitigation hierarchy for the construction stage of subsidized housing development was analyzed using the Interpretive Structural Modeling–Cross Impact Matrix Multiplication Applied to Classification (ISM-MICMAC) integration method. Fifty-five risks were identified at the construction stage, and five of them are major. Twelve mitigations are arranged based on the estimated impacts they will cause. The relationship between mitigation variables is analyzed using the ISM method followed by analysis using the MICMAC method. Five levels of hierarchy with a total of fifty- five contextual relationships between variables are spread across three quadrants on the MICMAC diagram: driver/independence linkage, and dependence. No mitigation falls into the autonomous quadrant. Mitigations that falls into the driver/independence category equals six, the linkage quadrant equals two, and the dependence quadrant equals four. Three hierarchical pathways divide the five levels of hierarchy, each with its driver for mitigation. The first path involves selecting competitive suppliers and construction cost efficiency including innovation in materials and technology. The second path is establishing structured communication between project parties. The third path is to maximize the bank credit ceiling. This risk mitigation model is expected to provide input to reduce or eliminate risks for subsidized housing developers during the construction stage.

Keywords: risk, mitigation, ISM, MICMAC, subsidized housing, developer, construction stage.

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Citation: Lestari, I. G. A. A. I., Sudarsana, D. K., Astana, I. N. Y., and Yana, A. A. G. A. (2025). Risk Mitigation Based on ISM-MICMAC Method for Subsidized Housing Development in Construction Stage. Journal of Engineering, Project, and Production Management, 15(4), 2025-121.

DOI: 10.32738/JEPPM-2025-121

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