Anies Must Pay Commitment Fee Formula E For 5 Years, Deputy Governor Riza: Doesn't Have To Pay Off This Year

JAKARTA - A letter from the Youth and Sports Agency (Dispora) has circulated reminding the Governor of DKI Jakarta Anies Baswedan to pay off the Formula E commitment fee before his term of office expires in 2022.

In response to this, the Deputy Governor of DKI Jakarta, Ahmad Riza Patria, considers that the commitment fee payment for 5 years of Formula E implementation should not be paid in the near future.

"It will be paid off later, in the following years. Does it all have to be paid off this year? No," said Riza at DKI City Hall, Central Jakarta, Tuesday, September 14.

Riza claimed that the DKI Provincial Government was carrying out preparations for the Formula E event according to the rules and recommendations of the Supreme Audit Agency (BPK).

"Formula E is in accordance with the existing regulatory mechanism. We will solve it based on the rules, provisions, based on mutual agreement," said Riza.

In fact, Riza admits that the cost of implementing Formula E does not only come from the APBD. The DKI Provincial Government is trying to find sponsors from the private sector.

"Later on, the program will not only be charged to the APBD, it will even be charged by the private sector, by the sponsor," he explained.

Previously, the DKI Dispora sent a report letter regarding the planned Formula E activities to Anies Baswedan. This letter was sent on August 15, 2019. 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," wrote the letter 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 IDR 360 billion, a commitment fee in 2020 of 11 million pounds sterling or equivalent to IDR 200 billion, and a bank guarantee of 22 million pounds sterling or IDR 423 billion.