Why Can't Formula E Commitment Fee Be Withdrawn? Anies' Men: We Don't Want To Cancel The Event

JAKARTA - The Regional-Owned Enterprise (BUMD) that organizes Formula E, PT Jakarta Propertindo (Jakpro) explained the reason why the DKI Provincial Government cannot withdraw the commitment fee that has been paid every year. Even though Formula E was officially postponed until 2022.

PT Jakpro's Sportainment Project Director, M. Maulana, explained that the commitment fee that has been paid for hundreds of billions of Rupiah cannot be withdrawn because Formula E is not canceled.

"We don't want to cancel Formula E in Jakarta, we just postpone it. Therefore, the commitment fee that has been paid will be used for the implementation of this event in 2022", said Maulana in a written statement, Tuesday, March 23.

Maulana explained that the commitment fee is the money normally paid by the city to host international championships, such as the electric-powered car racing event.

Moreover, according to him, the commitment fee will be used to finance the logistics of the event, the cost of lodging for the riders and their teams, which total nearly 2.000 people, the making of the event stands, prizes for the winners, and the cost of certifying this event to comply with international standards.

"This includes the cost of airtime for International Television, which broadcasts this event live, where the face of Jakarta will appear in it and become the world's spotlight", he explained.

Therefore, Maulana guaranteed the Formula E commitment fee would not be forfeited even though the implementation was postponed for two years, from 2020 to 2022.

"The funds are not forfeited, because the Jakarta Eprix has been postponed until 2022. So, the money that has been paid will be used for events in 2022", said Maulana.

The DKI Jakarta Representative Audit Agency (BPK) reports the results of the audit of the DKI Jakarta Provincial Government's financial transactions for the plan to implement Formula E.

In the results of the audit issued on June 19, 2020, the BPK noted that DKI had spent almost IDR 1 trillion in preparation for Formula E, namely IDR 983.3 billion.

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

The DKI Provincial Government has been asked by a number of parties to withdraw the money that was 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 IDR 423 billion. Unfortunately, the BPK noted that the commitment fee was unsuccessful.

"The fee for phase 1 of the 2020/2021 season which has been paid to FEO is worth GBP 11.000.000.00 or approximately IDR 200.310.000.000 cannot be withdrawn", said Head of BPK Representative Office for DKI Jakarta, Pemut Aryo Wibowo.