Jakpro Admits Arrears of Formula E Commitment Fee of IDR 90 Billion Haven't Been Paid

Jakarta Formula E Circuit JIEC Ancol on Wednesday 12 May. (ANTARA-M Adimaja)

JAKARTA - PT Jakarta Propertindo (Jakpro) VP Corporate Secretary, Syachrial Syarief admitted that the lack of payment of the Formula E commitment fee of around IDR 90 billion has not been paid to date.

"As for the payment process, it hasn't been paid. The payment is in progress", said Syachrial at the DKI Jakarta DPRD building, Tuesday, January 31.

In 2019 and 2020, the DKI Jakarta Provincial Government will pay a commitment fee of IDR 560 billion from the DKI Jakarta APBD (Regional Revenue and Expenditure Budget). In paying the IDR 90 billion arrears, Jakpro admits that it will pay off from the company's funds.

Remember, the DKI Jakarta APBD has banned the Provincial Government of DKI from disbursing the needs for this electric car racing event from the regional budget after IDR 560 billion has been disbursed.

"He paid using company funds. We are already committed, we will complete it B2B (business to business)", he said.

As is well known, in the BPK audit report (LHP) on the DKI Jakarta Provincial Government's financial statements for 2021, it was revealed that the commitment fee according to PT Jakpro's renegotiation results was not IDR 560 billion.

BPK's LHP revealed that the actual commitment fee was around IDR 653 billion or 36 million pounds. BPK found this in the feasibility study revision document which was rearranged by Jakpro. However, the total commitment fee has never been disclosed by the Provincial Government of DKI and Jakpro before.

The lack of payment of the commitment fee was justified by the former President Director of PT Jakpro Widi Amanasto. Widi said that the lack of commitment fees, which had previously been paid Rp560 billion through the regional budget, had been entered into a renegotiation agreement with Formula E Operations (FEO).

Widi explained, in the renegotiation process that took place in mid-2021, the calculation of the Formula E commitment fee payment was set at £12 million per year.

This figure is down from the nominal deal before the renegotiation. Where the Formula E commitment fee must be paid by DKI Jakarta in the amount of 20 million pounds.

So that in planning Formula E for 3 years of implementation, DKI must pay 36 million pounds or equivalent to IDR 653 billion.

Meanwhile, the Provincial Government of DKI has paid a Formula E commitment fee of IDR 560 billion from the 2019 and 2020 Regional Revenue and Expenditure Budget. This payment was made before Formula E was postponed to 2022.

Meanwhile, the remaining payment of IDR 90.7 billion will be borne by PT Jakpro through company funds. According to the agreement, this underpayment has a deadline until the third year of Formula E, namely in 2024.