Indef Survey: Formula E's Contribution To Jakarta's Economy IDR 2.63 Trillion

Screenshot - Aerial photo of the Jakarta Formula E circuit in Ancol, North Jakarta, Tuesday (31/5/2022). ANTARA/Instagram@aniesbaswedan/dewa

JAKARTA - The Institute for Development of Economics and Finance (Indef) survey stated that the contribution of the Formula E electric car racing event to the Jakarta economy reached Rp.2.63 trillion or increased 0.08 percent of the real Gross Regional Domestic Product (GRDP) in DKI in one year.

"It's not for companies but for the Jakarta economy, so it moves sectors," said Head of the Center for Macro and Finance Indef M Rizal Taufikurahman explaining the survey results reported by ANTARA, Thursday, June 23.

He detailed that based on the Indef study, the total economic impact, namely the impact on the additional DKI Jakarta GRDP, reached Rp. 2.04 trillion and the direct impact was Rp. 597 billion.

The additional impact of the GRDP is a multiplier effect on the Jakarta economy from the implementation of the Formula E electric car race.

As for the direct impact, starting from the preparation until the race event took place.

Indef detailed the assumption that the direct impact would consist of a capital expenditure allocation of Rp. 213 billion, an allocation of operational expenditure of Rp. 112 billion, and a commitment fee of Rp. 216 billion.

In addition, visitor and ticket expenditures reached IDR 52.4 billion and MSME transactions reached IDR 4.54 billion.

Indef uses the economic impact analysis methodology of Formula E Jakarta with a qualitative approach using primary data through group discussions (FGD), surveys, and in-depth interviews both online and offline.

In addition, the quantitative approach uses secondary data through agency surveys, desk studies, and literature.

Then, primary data sources are obtained from the central government, local governments, business actors, and secondary data from related agencies and institutions.

In addition, Indef also conducted a survey to visitors with the number of respondents reaching 1,555 quantitative respondents and 71 qualitative respondents who were taken one week after the race via e-mail and application messages.