Batam Apindo Backs Minister’s Directive to Hold Government Events in Hotels and Restaurants
Monday, 09 June 2025
Batam – The Batam chapter of the Indonesian Employers’ Association (Apindo) has welcomed a directive issued by Minister of Home Affairs Tito Karnavian, which allows local governments to resume holding official activities in hotels and restaurants.
Rafki Rasyid, Chairman of Apindo Batam, expressed his appreciation for the policy, calling it a timely move to support the struggling hospitality and restaurant sectors amid ongoing budget efficiency measures.
“We welcome and appreciate the Home Affairs Minister’s instruction to local governments to conduct events in hotels and restaurants. This will provide some relief to the sector, which is currently under threat due to reduced government spending,” Rafki said on Monday (June 9).
He noted that hotels and restaurants in Batam have been facing a downturn, especially following the sharp decline in government-related events, which had been a key revenue stream, particularly in the Meeting, Incentive, Convention, and Exhibition (MICE) segment.
Many business owners, he added, are now voicing concerns over potential layoffs due to the lack of operational activities.
“The threat of layoffs, which has recently emerged, could be mitigated if hotel and restaurant operations can continue. Government events have been a lifeline, especially during times of low tourist arrivals,” he explained.
Rafki emphasized that budget efficiency should not be equated with a complete halt to offsite activities, particularly those held in hotels and restaurants. He argued that such measures must take into account the economic impact on private sector actors who have long collaborated with the government.
“Efficiency should not automatically mean cutting off hotel and restaurant events. These government activities have been crucial to keeping hospitality businesses running. Many MICE operators rely heavily on this type of work,” he asserted.
He also urged local authorities in Batam to promptly implement the directive, highlighting the hospitality sector’s vital role in the regional economy and job creation.
“We call on local governments to act quickly. This could be a lifeline for hotel and restaurant businesses that are on the verge of collapse,” he concluded.
Earlier, Minister Tito Karnavian stated that local governments are now permitted to hold various official functions in hotels and restaurants. He confirmed the policy has been discussed and approved directly by President Prabowo Subianto.
“Regions are allowed to conduct activities in hotels and restaurants. I assure you—I have spoken directly with President Prabowo,” Tito was quoted as saying by Antara.
The minister emphasized the importance of sustaining the hospitality industry, which relies heavily on government-led MICE events. In addition to employing large numbers of people, the sector also supports a wide range of micro-entrepreneurs in the food and beverage supply chain.
“Cutbacks are fine, but don’t eliminate them entirely. Continue holding events in hotels and restaurants. Target those that are on the brink of collapse, and hold activities there to help them survive,” he said.
Source: batampos.co.id
