Asked About The Obligation To Pay Off The Commitment Fee For Formula E, The Head Of The DKI Dispora Remains Silent

JAKARTA - Head of the DKI Youth and Sports Agency (Dispora) Achmad Firdaus was silent when asked about the obligation of DKI Jakarta Governor Anies Baswedan to pay the commitment fee for Formula E for 5 years.

This obligation was once reminded by the Head of the DKI Dispora through a letter sent to Anies. However, Firdaus did not want to comment.

"I don't have any comment on that first. I will take care of it later", said Firdaus when met at the DKI City Hall, Central Jakarta, Wednesday, September 15.

Firdaus also does not want to comment on the potential for international lawsuits against the DKI Provincial Government if the commitment fee for Formula E is not paid. "I have nothing to say", said Firdaus, leaving the media crew.

Previously, a letter was circulated from the DKI Dispora regarding the plan for 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", the letter said.

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. 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.

Currently, the DKI Provincial Government has disbursed the Regional Budget (APBD) of almost IDR 1 trillion. In detail, the payment of a commitment fee for 2 terms paid in 2019 was 20 million pounds sterling or equivalent to IDR 360 billion, a term 1 commitment fee in 2020 was 11 million pounds sterling or equivalent to IDR 200 billion, and a bank guarantee of 22 million pounds sterling or IDR 423 billion.