Why Is Formula E's Commitment Fee Can Drop From IDR 2.3 Trillion To IDR 560 Billion? This Is The Explanation Of Anies' Subordinates

ILLUSTRATION/ UNSPLASH

JAKARTA - Managing Director of Formula E, Gunung Kartiko, explained the reason why the commitment fee payment for Formula E could go down. In the initial agreement in 2019, the DKI Provincial Government must pay a commitment fee of a total of around IDR 2.3 trillion which is paid in installments every year.

Now, the obligation to pay the commitment fee has decreased to IDR 560 billion. Gunung explained that this reduction was indeed a request for PT Jakarta Propertindo in their renegotiation process with Formula E Operation (FEO).

"We negotiate online every night for several days we carry out negotiations and thank God the results are quite positive", said Gunung in a live broadcast on Jakprogroup Instagram, quoted on Wednesday, November 10.

So how do negotiations work? Gunung admitted that Jakpro asked for FEO's understanding of the ongoing COVID-19 pandemic situation, including in Indonesia.

Finally, the FEO approved the request for a reduction in the commitment fee to IDR 560 billion for three years, namely 2022, 2023, and 2024.

"This moment (of the COVID-19 pandemic) is what we actually used when we negotiated with the FEO", he said.

However, it turns out that FEO is still asking for an additional £5 million commitment fee. Since the Governor of DKI Jakarta Anies Baswedan no longer wants to use the Regional Budget in the implementation of Formula E, Jakpro will look for sponsors.

"We also have to add there, but not much plus 5 million, of which five million its sponsored funds. So, there is no Regional Budget at all", he said.