Govt Bans State-Owned Enterprises’ CEOs from Holding Meeting in Hotels

Govt Bans State-Owned Enterprises’ CEOs from Holding Meeting in Hotels

JAKARTA ~

As a budget-saving measure, State-owned Enterprises Minister Rini Soemarno has instructed CEOs and directors of state-owned enterprises to hold meetings in their offices rather than in hotels.

“Meetings must be held in the office. If there are official visits scheduled, the CEOs and directors must stay in budget hotels. All state-owned enterprises’ activities must be efficient,” Rini noted on Monday.

According to the minister, the policy was in accordance with the government’s plan to maximize budget efficiency. The Ministry of State Employees and Bureaucracy Reform had earlier banned state employees from conducting meetings in hotels and reducing the number of unnecessary official visits.

Minister of State Employees and Bureaucratic Reform Yuddy Chrisnandi earlier stated that the new efficiency policy implemented on governmental bodies could save up to 20 percent of the state budget.

The efficiency policy will come into effect from December 1, 2014, and is applicable to all employees in the ministries, provincial governments, and district governments.

Previosuly, President Joko Widodo has said he will cut official travel and meeting expenditures by Rp16 trillion in the 2015 fiscal year.

“Meeting and travel expenditures reach Rp41 trillion. I have ordered to bring it down to Rp25 trillion. Our travel and meeting expenditures have only reached Rp22 trillion until today. So, an allocation of Rp25 trillion will be enough for the purpose,” he told newsmen on the sidelines of a meeting with provincial governors at the presidential palace on Monday.

He added that the Rp16 trillion saved can be used for development projects.

President Joko Widodo noted he will study the 2015 budget to look for allocations that are considered inefficient and convert them into infrastructure development programs.

He explained that provincial governors from across the country were gathered to seek their inputs as well as to synchronize all central and regional development programs.

He revealed that he also discussed the 2015 budget and the development programs to be implemented during the year.

“We discussed the 2015 programs as they will be started early in the year. We have also asked ministers to be mindful of budget allocations that are not efficient,” he added.

Disclaimer: While every effort has been made to ensure accuracy, this article may contain minor inaccuracies in names, locations, or event details. Readers are welcome to contact the editorial team for any clarification.

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