It Turns Out That Anies Is Obliged To Pay A 5-year Formula E Commitment Fee, Otherwise There Will Be A Default That Can Be Sued

JAKARTA - DKI Jakarta Youth and Sports Agency (Dispora) sent a report letter regarding the planned Formula E activities to DKI Jakarta Governor Anies Baswedan.

This letter was sent on August 15, 2021. In the letter, the DKI Dispora reminded Anies to pay off the obligation to pay the Formula E commitment fee for 5 years.

In details, the 2019/2020 session is £20 million, the 2020/2021 session is £22 million, the 2021/2022 session is £24.2 million, the 2022/2023 session is £26.6 million, and the 2023/2024 session is £29.2 million.

"Based on the results of a study on the draft memorandum of understanding (MoU) between the DKI Provincial Government and Formula E Limited, there is an obligation that the DKI Provincial Government has to pay in the form of a commitment fee for 5 consecutive years," the letter said, quoted on Monday, September 13.

In accordance with Article 92 Paragraph (6) of Government Regulation (PP) Number 12 of 2019 concerning Regional Financial Management, the budgeting period for multi-year activities does not exceed the end of the year the term of office of the regional head ends, unless the activity is a national priority and/or national strategic interest.

This means that Anies must pay a commitment fee for the 5-year Formula E session before his term ends in October 2022. Because, it has been agreed in the MoU.

If Anies violates the agreement, the planned Formula E event will be labeled as a default and can be sued in international arbitration.

"With the signing of the MoU, the DKI Jakarta Provincial Government must be able to allocate a budget with the amount agreed. If this obligation cannot be carried out, it will be considered as an act of default which can be sued in international arbitration in Singapore," he wrote.

So far, Anies has paid a commitment fee paid in 2019 of 20 million pounds sterling, equivalent to Rp360 billion, a commitment fee in 2020 of 11 million pounds sterling or equivalent to Rp200 billion, and a bank guarantee of 22 million pounds sterling or Rp423 billion.

The sending of this report was confirmed by Member of Commission B of the DKI DPRD, Gilbert Simanjuntak. Gilbert has confirmed the letter to the DKI Dispora.

"It's confirmed, it's true," Gilbert said in a text message.