Robert Go, Jakarta – Cash-strapped Indonesia is considering a proposal to sell more than 500 houses alloted as perks to MPs and Cabinet ministers as a means of saving money, said the head of parliament's budget committee.

Mr Benny Pasaribu, an MP from President Megawati Sukarnoputri's Indonesian Democratic Party-Struggle (PDI-P) party, told The Straits Times: "The housing facilities for ministers and legislators are a legacy of Suharto's New Order. It is a big drain on the state budget and it really is wasteful. One way for us to keep costs down, now that we're in economic difficulty, is to sell them."

He was talking about the more than 500 residences that are reserved for use by national legislators when they spend time in the capital. The 32 Cabinet ministers also get official houses during their tenure.

Mr Benny's belt-tightening plan, in addition, covers several meeting and recreational facilities that are set aside for use by public officials. The government pays for renovation, maintenance and security costs of the units.

Public funds are also used to keep these houses fully furnished with modern electronic equipment, such as TV and radio sets, and other household needs such as refrigerators and air-conditioners.

Mr Benny, who will present his ideas next month when parliament reconvenes after a holiday break, claimed that the government budgets billions of rupiah on the upkeep of official houses. He did not elaborate, however, on how much money the government can expect to gain after selling them, or how soon this plan can be implemented.

But in place of the current system, Mr Benny wants to propose that the government gives housing allowances, enough to secure an apartment or a "modest" house near the parliament complex, to serving legislators. According to him, most legislators spend considerable portions of their time in their home constituencies. Others own private houses, and prefer to use them in the Jakarta area.

With many of the units empty or underused, the government needs to adopt a more flexible, cost-saving system. "The housing allowance would cover only the time we actually spend in Jakarta. This allowance system should save the government some money. It is a problem that the government now spends lots of money needlessly, and this is one such expenditure," he said.

In addition to the official houses, Indonesian legislators also do not pay taxes on their government salaries and enjoy other perks, including a sizeable travel allowance and stays at five-star hotels in Jakarta during key parliamentary sessions.