Jakarta. Home Affairs Minister Tito Karnavian criticized provincial and municipal governments on Monday for inefficient budget management, stating that they spend more on meetings and travel allowances than on concrete public service programs.

"There is a disproportionate share of unnecessary spending such as meetings and official trips,” Tito said during a discussion hosted by the Corruption Eradication Commission (KPK) in Jakarta.

"A program that actually costs Rp 5 billion requires an additional Rp 2 billion for comparative studies, Rp 3 billion for meetings, and Rp 10 billion for travel allowances. Spending on preparatory activities is much higher than the cost of the actual program.”

Tito said local government budgets are largely inefficient, with the majority of funds allocated to salaries and allowances rather than infrastructure development or the improvement of public services.

The minister also warned local leaders against extorting money from the business community in exchange for business permits.

"We need to support the private sector by granting business permits and ensuring ease of doing business. Don’t extort businesses,” Tito said. “If necessary, new businesses can be exempt from local taxes until they become profitable."

He highlighted the recent arrest of Ambon Mayor Richard Louhenapessy, who is accused of corruption for extorting tens of billions of rupiah from a leading minimarket chain in exchange for a business permit in the Maluku capital.

"I encourage local leaders to support the private sector -- not cripple their businesses," Tito said.