Jakarta Governor Basuki Tjahaja Purnama says the bulk of the Rp 1.2 trillion ($87.7 million) spent by the city's tourism agency on promotional festivals and events in 2014 went toward renting venues and hiring event organizers. (JG Photo/Afriadi Hikmal)

Jakarta. Governor Basuki Tjahaja Purnama has slashed the budget for hosting festivals and events to promote Jakarta next year by nearly 60 percent, alleging markups and inefficient spending.

Basuki told Tempo that the Jakarta Tourism and Culture Agency spent more than Rp 1.2 trillion ($87.7 million) to host a series of festivals in 2014, the bulk of which went toward renting venues and hiring event organizers.

“So in 2015 we cut the budget [for festivals and events] to Rp 700 billion. Next year the agency might only get Rp 300 billion,” the governor said.

Basuki added that as of 2016, the agency could be barred from hiring private event organizers, particularly for events that the city has been hosting for years.

“Because it’s been employing event organizers, the agency has had to budget Rp 300 million to Rp 400 million to rent large Jakarta theaters. Imagine that – a government agency having to pay for buildings owned by the city?” he said.

“I’m not against festivals and events. What I’m fighting against are markups. After evaluating [the agency’s budget], there have been too many markups.”

Basuki said he had instructed the tourism agency to spend more on renovating museums.

“Our museums are damp. Some are leaking. Yet [the agency] continues to stage festivals and events for Rp 3 billion to Rp 5 billion each,” he said.

“Maybe the agency officials thought I wouldn’t scrutinize their budget. I’ve been very lenient for the 2015 [budget] because I don’t want trouble with agency officials, with the City Council and the Home Affairs Ministry. But I won’t be as tolerant for the 2016 [budget].”

Since he became governor a year ago, Basuki has tred to overhaul how city agencies apply for and spend their funding – a process that he said was riddled with “phantom projects.”

These efforts last year put him at odds with City Council members and dragged the budget deliberation process out for months beyond the year-end deadline.

For the past week, the governor has held meetings with his subordinates to discuss budgets proposed by all of the city’s agencies and has scrapped projects that he sees as wasteful and overpriced.