Travel and amusement spending up

JAKARTA (JP): Large companies operating in Indonesia spend an average of Rp 270 million (US$121,348) per annum on traveling and entertainment, a survey has shown.

Bill Pardos, vice president and general manager for Indonesia's branch of American Express Travel Related Services, said last week that nearly 85 percent of the expenses is spent on air travel and lodging.

Quoting the results of a survey conducted in Jakarta by Survey Research Indonesia from May to July 1994, Pardos said that 51 percent of the 205 respondents reported increases of up to 30 percent in their spending for traveling and entertainment.

"This clearly indicates that companies regard traveling and entertainment as vital parts of their businesses," he said.

The survey participants were national and multinational companies which were selected randomly from the Business Directory of Indonesia's 200 largest companies and Amex Corporate Accounts listings.

Pardos said 86 percent of the participants surveyed agreed that traveling and entertainment expenses could be controlled through travel policies, but only 44 percent believed that a formal policy could efficiently control such expenses.

However, only 32 percent of the companies had formal travel policies which are reviewed and updated annually, he said.

Bambang Gunawan, American Express Travel Related Services' manager for travel management service, said the survey also showed that even though most of the respondents book their employees' itineraries through travel agencies, only six percent of the respondents rated the services they receive as "very good". (als)