Anies Threatened To Be Sued If Formula E's Commitment Fee Is Not Paid, PDIP: Better To Be Sued

JAKARTA - DKI Jakarta Governor Anies Baswedan is obliged to pay the commitment fee for Formula E in 5 years of implementation. If not, Anies could potentially be sued in international arbitration.

In response to this, Gilbert Simanjuntak, a member of the PDIP faction of the DKI DPRD, considers it better for the lawsuit to be filed. In this case, it was sued by Formula E Operation (FEO).

"In my opinion, it would be better to just be sued in international arbitration so that everything is clear," Gilbert told VOI, Thursday, September 15.

If the issue of Formula E is brought to court, said Gilbert, Anies must explain the preparations for the implementation of the electric car racing event, including the obstacles faced.

"It's possible, if only interpelled, he could dodge. If it's in court, how can it be possible to dodge," said Gilbert.

Moreover, according to Gilbert, DKI also has the opportunity not to be required to pay a commitment fee if this case is brought to an international court because it does not have the budget to pay.

With a note, Anies must be able to prove that the conditions of the COVID-19 pandemic have resulted in the regional budget being unable to pay the costs of organizing Formula E.

"If DKI can convince us that we don't have money anymore, provide evidence of the financial condition of the region where there is no budget to pay the commitment fee, we can win. We might end up not having to pay the commitment fee that has not been paid off. detrimental," explains Gilbert.

However, Gilbert said, the proof must refer to a memorandum of understanding (MoU) or an agreement between two parties stated in an official document. Gilbert admitted that the DPRD did not know the contents of the Formula E MoU.

"Back again to the MoU clause between DKI and Formula E, whether there is a force major clause. We don't know. Since the beginning we have asked for the document, until now it has never been given," he explained.

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

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 to Formula E Operation (FEO).

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. The estimated cost to be paid is IDR 2.3 trillion.

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. The total is almost IDR 1 trillion.

"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. 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.