PSI Exposes Formula E Budget Irregularities

Governor of DKI Jakarta Anies Baswedan when meeting with Formula E CEO Alejandro Agag in New York (Photo: Instagram @aniesbaswedan)

JAKARTA - The Indonesian Solidarity Party (PSI) faction of the DKI DPRD revealed three things that were considered odd related to the budget for the expenditure plan for the performance of Formula E.

Member of the PSI DPRD DKI Faction, Anggara Wicitra Sastroamidjojo, revealed that the first irregularity was the Formula E agreement made by PT JakPro with Formula E Operation Limited (FEO).

However, Anggara said, the payment of a commitment fee in 2019 of Rp.560 billion was even borne by the budget of the DKI Jakarta Youth and Sports Service (Dispora).

"It's funny, JakPro companies are bound by financial obligations because JakPro signed the contract, but how come the people who are told to pay use the APBD via the Dispora budget," Anggara said in his statement, Wednesday, January 27.

In fact, said Anggara, Dispora did not even participate in the signing of the commitment fee payment agreement. According to him, under the rule of law, non-payable payments can be refunded if the contract uses Indonesian law.

The second oddity is the lack of clarity in determining the value of the commitment fee to be paid annually. The value of the 2020 Formula E commitment fee is IDR 360 billion.

Next, the Youth and Sports Agency has paid IDR 200 billion, which is 50 percent of the value of the commitment fee for the payment in 2021.

"The Youth and Sports Service and Jakpro cannot explain the story, the DKI Jakarta Provincial Government has to pay a commitment fee of hundreds of billions per year," said Anggara.

"Do the municipalities of Hong Kong, London and New York have to pay a Formula E commitment fee? All of that cannot be answered. There is an impression that Jakpro simply accepts the commitment fee determined unilaterally by FEO," he continued.

The third oddity is the uncertainty in the fate of bank interest which has been deposited on the commitment fee. Anggara estimated that the commitment fee after settling the Rp560 billion for more than 1 year, may have generated tens of billions of rupiah in bank interest.

"If the DKI Pemprov cannot withdraw the bank interest, the regional finances will suffer a loss with this agreement. This is a potential regional loss that law enforcers need to pay close attention to, "he said.

Thus, Anggara asked Anies to step in and explain himself to the public. "Don't keep throwing your body at your subordinates," he added.