Many Critical Notes From BPK, Deputy Governor Riza: Formula E Has No Problem

JAKARTA - Deputy Governor of DKI Jakarta, Ahmad Riza Patria, said that the plan to stage Formula E, which has yet to be implemented, has no significant problems.

This is despite the fact that the DKI Jakarta Representative Audit Agency (BPK) has provided a number of critical notes and recommendations for improving plans for the electric-powered car racing event.

"Formula E has no problem. We all consult and supervise and inspect BPK. So far, there are no problems. God willing, in the future we can successfully implement Formula E," said Riza at the City Hall of DKI, Central Jakarta, Monday, March 22.

The initial plan, Formula E was to be held on June 6, 2020. However, this environmentally friendly car racing event had to be postponed due to the COVID-19 pandemic.

Riza now believes that Formula E can be held in 2022. If in 2022 the COVID-19 pandemic still hits, DKI will hold it by implementing health protocols.

"God willing, in 2022 we will implement Formula E in Jakarta. Of course in accordance with the regulations, provisions, etc. and health protocols, in 2022 it is still quite high," he said.

It is known, the BPK Representative of DKI Jakarta reported the results of the audit of the DKI Provincial Government's financial transactions in planning the Formula E event in 2019 to 2020.

In a report issued on June 19, 2020, BPK noted that Anies had paid a commitment fee to Formula E Operations Limited (FEO) and a Bank Guarantee of nearly IDR1 trillion.

"Based on research on financial transactions related to the implementation of Formula E, it is known that payments made to FEO were worth GBP 53,000,000 or the equivalent of Rp. 983,310,000,000," said Head of BPK Representative Office for DKI Jakarta Pemut Aryo Wibowo, quoted by VOI from the audit report.

In detail, there is a commitment fee paid in 2019 worth IDR 360 billion. Furthermore, in 2020, the paid commitment fee is equivalent to IDR 200.3 billion. Then, the Bank Guarantee that is paid is worth IDR 423 billion.

The BPK noted that all of the financing costs for the electric-powered car racing event, which has been prepared since 2019, are still being borne by the DKI Regional Budget.

"Funding for the 2019/2020 Formula E activities, both through the budget of the Youth and Sports Service (Dispora) and PT Jakpro's regional capital participation (PMD), the financing burden is still very dependent on the DKI Jakarta Province APBD funds," said Pemut.

In fact, Anies has issued Governor Regulation Number 83 of 2019. Its contents, Anies assigns BUMD PT Jakpro as the organizer to be able to find sponsors or cooperation from other parties.

Pemut said, this problem would result in PT Jakpro being unable to independently manage Formula E activities, thus increasing the risk of failure in the implementation.

Therefore, BPK urged the DKI Dispora to encourage PT Jakpro to cooperate with other parties. In principle, in order to find other sources of funding in implementing Formula E apart from the APBD.

"The concept of third party funding as sponsorship is an indispensable alternative to financing. This can reduce the dependence on Formula E financing on the DKI Regional Budget," said Pemut.

The DKI Provincial Government has been asked by a number of parties to withdraw the money disbursed so that it can be diverted for handling the pandemic.

BPK noted that PT Jakpro as the organizer of the BUMD managed to withdraw from a bank guarantee worth IDR423 billion. Unfortunately, the BPK noted that the commitment fee was unsuccessful.

Pemut said, the results of negotiations between PT Jakpro and Formula E Operations Limited (FEO) to attract a commitment fee were unsuccessful. Even though the first and second Formula E seasons were canceled the money could not be recovered.

"FEO stated that the fee is a financial guarantee for the potential obligations of PT Jakpro according to the previous agreement," said Pemut.

The BPK assesses that the DKI Jakarta Provincial Government has not conducted the negotiations optimally. Therefore, the BPK asked PT Jakpro as the organizer of Formula E and representatives of the DKI Provincial Government to renegotiate with the FEO related to affirmation and clarify the status of the sustainability of the cooperation and the status of the funds that have been deposited.