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November 10, 2014
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Asia: Hotels Call for Indonesia's Government to Review Meetings Policy


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THE Indonesian Hotel and Restaurant Association is urging the government to review its order for all official meetings to be held in offices rather than hotels.

The move hurts hotels especially in regions where government meetings contribute 40-50 per cent of business. 

Yanti Sukamdani, association chairman, said: “Hotel business is an agent of economic development in a region. Hotel and restaurant sectors contributed up to Rp50 trillion  (US$4.2 billion) of tax revenue in 2012, the second biggest source after oil and gas.

“The government has set a high target of 20 million international arrivals and 75 million domestic travellers. One of the sectors that will contribute to this is MICE.”

As part of efforts to trim the state budget, Indonesian president Joko Widodo (Jokowi) instructed government officials to hold meetings on their own premises instead of hotels.

Hariyadi Sukamdani, IHRA vice chairman, said that while the new regulation creates the impression that hotel meetings are wasted expenditure, this was not necessarily the case. “Out-of-town participants still need to stay in a hotel and need transport to travel to and from the government offices. Is it really (cost- and time-) efficient?

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