It Turns Out That Formula E's Profit Is Estimated To Be Only One-third Of Expenditure

Discussion on Formula E in Jakarta. (Diah Ayu Wardani / VOI)

JAKARTA - President Director of PT Jakarta Propertindo (JakPro) Dwi Wahyu Daryoto estimates that the direct profit from implementing Formula E this year is around Rp. 500 to Rp. 600 billion.

Meanwhile, to hold the electric-powered car racing event, the DKI Provincial Government spends the DKI budget in the 2020 APBD of IDR 1.6 trillion. This means that the profit is only one third of the cost of expenses.

"We have collaborated and received discussions with Bank Indonesia in the process of carrying out the economic study. The real cost is IDR 500-600 billion," Dwi said during a discussion in the Cikini area, Central Jakarta, Friday, February 14.

This advantage, said Dwi, came mostly from lodging costs and spending for the Formula E Operations Limited (FEO) Team from various countries.

"FEO alone will have nearly 2000 people living in Indonesia a week. Imagine spending their money on hotels and so on," he said.

Even so, Dwi explained, indirectly the implementation of Formula E would indirectly increase state income in the form of gross domestic product (GDP) or Growth Domestic Product (GDP) by 0.02 percent.

"Bank Indonesia also calculates the impact of a 1-day percentage increase to GDP. One day is 0.02 percent. The source can come from tourism and so on," Dwi said.

For information, Formula E is the second most popular racing tournament after Formula 1. The difference with Formula 1, Formula E already uses an electric powered engine. Later this speeding action will be held on a highway that has been converted into a temporary circuit.

The circuit will start at Jalan Medan Merdeka Selatan to the Horse Statue area, enter the Southwest gate of Monas, enter the Monas area, turn left to the west side, turn back south, exit right through the Southeast exit of Monas towards Gambir, then pass in front of the US Embassy at Jalan Medan Merdeka Selatan.

The Formula E circuit track has 11 bends with a length of 2.6 km. This emission-free car racing event will be held on June 6, 2020. The plan is that this event will be held for 5 consecutive years.

In order to be able to hold Formula E, the DKI Provincial Government has proposed the DKI budget in the APBD to reach around Rp1.6 trillion. In detail, there is a budget of IDR 360 billion for the commitment fee to the Formula E federation.

In addition, a budget of Rp. 934 billion was disbursed for organizing funds which will be managed by the Jakarta Education and Sports Agency (Dispora). Separately, DKI BUMD, namely PT Jakarta Propertindo (JakPro), also requires a budget of IDR 305.2 billion for the cost of implementing it.