Bad News! BPK Records The DKI Jakarta Provincial Government's Commitment Fee Money Cannot Be Withdrawn, This Amount

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

JAKARTA - The DKI Jakarta Representative Audit Agency (BPK) reports the results of an audit of the DKI Jakarta Provincial Government's financial transactions for the planned implementation of Formula E.

In the results of the audit issued on June 19, 2020, the BPK noted that DKI had spent almost IDR1 trillion in preparation for Formula E, namely IDR 983.3 billion.

In detail, there is a commitment fee paid in 2019 worth IDR 360 billion. Furthermore, in 2020, the commitment fee to be paid is worth IDR 200.3 billion. Then, the Bank Guarantee that is paid is worth IDR 423 billion.

Until finally, Indonesia was hit by the COVID-19 pandemic. DKI Jakarta Governor Anies Baswedan postponed the implementation of Formula E which was supposed to be held on June 6, 2020.

The DKI Provincial Government has been asked by a number of parties to withdraw the money disbursed so that it can be diverted for handling the pandemic. BPK noted that PT Jakpro as the organizer of the BUMD managed to withdraw from a bank guarantee worth IDR423 billion. Unfortunately, the BPK noted that the commitment fee was unsuccessful.

"The fee for phase 1 of the 2020/2021 season that has been paid to FEO is worth GBP 11,000,000.00 or the equivalent of Rp.200,310,000,000 cannot be withdrawn," said Head of BPK Representative Office for DKI Jakarta Pemut Aryo Wibowo, quoted by VOI from the audit report. on Friday, March 19.

Pemut said, the results of negotiations between PT Jakpro and Formula E Operations Limited (FEO) to attract a commitment fee were unsuccessful. Even though the first and second Formula E seasons were canceled the money could not be recovered.

"FEO stated that the fee is a financial guarantee for the potential obligations of PT Jakpro according to the previous agreement," said Pemut.

BPK assesses that the DKI Jakarta Provincial Government has not been optimally conducting negotiations. Therefore, the BPK asked PT Jakpro as the organizer of Formula E and representatives of the DKI Provincial Government to renegotiate with the FEO related to affirmation and clarify the status of the sustainability of the cooperation and the status of the funds that have been deposited.

Previously reported, the DKI Jakarta DPRD Budget Agency once questioned the fate of the Formula E commitment fee when DKI made changes to the APBD to prioritize handling the COVID-19 pandemic last June.