TEMPO.CO, Jakarta - President Joko Widodo's instruction banning civil servants from holding meetings in hotels has yet to be issued, but ministers and governors have already announced the policy after they gathered at the State Palace, Jakarta last Tuesday. In the coordination meeting, President Jokowi expressly banned government activities from being organized other than in ministerial or institutional facilities.
This is a money-saving move, because we have a budget deficit. Tax revenues from the 2014 Amended State Budget as of September stood at only Rp663 trillion from a target of Rp1,072.38 trillion. Savings have been introduced since the time of President Susilo Bambang Yudhoyono, who managed to cut spending by Rp43 trillion. Given that spending on fuel subsidies is still very high, President Jokowi will have to make more savings. One way is a ban on government activities in hotels.
During the New Order regime President Suharto banned officials from holding weddings for their children in hotels. But this did not last long. Perhaps because the target was people's private lives the oversight was not effective. But this efficiency drive by President Jokowi is directed at state institutions and agencies.
Because it is an instruction, ministers and governors will implement it immediately. The oversight could be more effective because ministries have inspectorates, both at the center and in the regions. If this campaign is sustained, spending on meetings in hotels could be minimized. Large sums of money are involved. In the 2015 State Budget, Rp18 trillion is allocated for meetings in hotels and Rp15.5 trillion for official travel. Then there are the funds allocated by regional governments. The amount is unknown, but in Jakarta it is normal to spend Rp150 billion at a meeting held in a hotel.
These funds could make a real difference if they are used to make improvements to infrastructure or to build schools or community health centers. Regular efficiencies could result in more money being spent to bring about prosperity rather than being wasted in hotels. But this is of course in theory.
There are people who are disappointed with Jokowi's money-saving ways. Managers of star-rated hotels have expressed their disappointment in the name of the 'ordinary people' who work there. And leaders of the Indonesian Hotel and Restaurant Association, in the center as well as in the regions, have rejected Jokowi's policy. Hotels stand to lose a significant market if the money-saving program goes ahead. Not only luxury hotels in Jakarta and Bali's Nusa Dua will feel the blow, but also hotels in the Batu tourist district of East Java and Puncak in West Java.
Does the government have adequate facilities for gatherings involving guests from overseas? Perhaps government buildings are not up to standard, from the aspect of capacity or accommodation facilities. Therefore the government should not be averse to using hotels. The government should not build new facilities for large meetings using using the excuse of saving money. This would be wasteful because the cost of maintaining such buildings would not be in proportion to their use.
Efficiency measures must be taken, but internal oversight by ministries or regional governments is also needed. However, for activities needing more facilities or greater comfort for guests, there is nothing wrong with using hotel facilities. (*)
