Deputy Governor Riza Claims Benefits Of Formula E In Accordance With Expenditure Costs, Even Though BPK Is Not Sure

JAKARTA - Deputy Governor of DKI Jakarta Ahmad Riza Patria said that his party had carefully considered the expenditure and income cost scheme in holding Formula E.

According to Riza, this calculation was carried out by PT. Jakpro as the organizer using a third party, namely a financial consultant. According to him, even though there is a pandemic, the cost of profits will be equivalent to expenses.

"There is a review mechanism assessed by the consultant. What is the economic value, financial analysis for Jakarta, it has already been calculated. Otherwise, we don't dare. The money we spend will certainly match what we get," said Deputy Governor Riza at City Hall DKI, Central Jakarta, Monday, March 22.

Even though the electric-powered car racing event has been postponed from 2020, Riza admits that there will still be a positive economic impact that will be generated.

"So far, if all countries continue to implement it, it means that all possible risks and losses have been calculated. Of course, if it is implemented it will still have a positive impact," he said.

In BPK's findings, PT. Jakpro as the organizer submitted an estimated implementation cost of IDR 1.2 trillion, during 2019 to 2024. This figure is the Jakpro regional capital participation (PMD) sourced from the Regional Government Budget.

Then, Jakpro estimates that the impact of economic benefits for the host of Formula E organizers, in this case, DKI Jakarta Province, will reach IDR 2 trillion. This is a pre-pandemic count. This means that this revenue will decrease because Formula E experiences delays.

Unfortunately, the Audit Board (BPK) noted that Jakpro, in its proposal for calculating its economic impact, did not include the commitment fee for the implementation of Formula E, which was charged through the Regional Budget of the Youth and Sports Service.

In the report issued on June 19, 2020, the Audit Board noted that Anies had paid a commitment fee to Formula E Operations Limited (FEO) and Bank Guarantee of almost IDR 1 trillion, which was around IDR 983 billion.

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.

"By not taking into account the fee for implementing Formula E as an annual fee that must be paid through the Youth and Sports Service Local Budget (Dispora APBD), the results of the feasibility study above still do not describe the overall financing activity," said Head of BPK DKI Jakarta Representative, Pemut Aryo Wibowo, as quoted by VOI from the audit report.

"In addition, the condition of the COVID-19 force majeure, which affects and postpones the implementation of Formula E in 2020, will also influence the assumptions and calculations of the economic impact that were prepared previously in the previous feasibility study," he continued.