Trade-Offs For Formula E Plans Amid COVID-19

Racing Formula E (Photo: Instagram @fiaformulae)

JAKARTA - Commission E DPRD DKI will bring the issue of Formula E budget procurement to the DKI Budget Agency (Banggar) after holding a meeting that does not end in meeting points with the ranks of the DKI Provincial Government.

It is known, currently, local governments, including DKI, are tweaking the ceiling of the regional revenue and expenditure budget (APBD) to be allocated as handling COVID-19. Less urgent activity budgeting will be postponed to the next year or deleted. However, this year, the DKI Provincial Government still provides room for budgeting the commitment fee for the Formula E race.

Chairperson of Commission E Iman Satria said the reason for Formula E budgeting was brought to the Banggar to try to withdraw the budget that had been disbursed through discussions between the DPRD leadership and the DKI Jakarta Regional Government Budget Team (TAPD).

"We recommend to the leadership of the council to hold a Banggar and summon TAPD, including BPKD. Then the results of the Banggar can also be conveyed to the governor because the representatives (SKPD) will definitely come," Iman told reporters, Wednesday, June 17.

Meanwhile, Iman admitted that he would study the scheme of the Formula E implementation agreement between the DKI Provincial Government and the Formula E International Automotive Federation (FIA). This was to avoid potential sanctions if they violated the agreement.

"We first learn to what extent, we are afraid that there will be a penalty if the funds are asked to be returned, because this is not easy. We also want to ask TAPD or Jakpro, this is still feasible (feasible) or not on a b to b (business to business) basis," he said. Faith.

The down payment is paid again

In the discussion meeting between the DPRD and the DKI Jakarta Provincial Government which was held on Tuesday, June 16, the Head of the Jakarta Youth and Sports Service, Achmad Firdaus, admitted that he has again paid the commitment fee or the down payment for Formula E this year.

The commitment fee for the racing event, which was originally held on June 6, is paid annually for five years, with two terms per year. In August 2019, the DKI Jakarta Provincial Government has paid the first term of 10 million pounds. Then, the second term of £ 10 million was paid in December 2019.

Until finally the COVID-19 outbreak broke out. The budget has been tampered with so that it can be allocated for handling the corona virus. However, DKI is still budgeting 11 million pounds for the first-term payment in 2020. In total, 31 pounds have been disbursed.

"Meanwhile, the second term (which should be paid in) 2020 has not been implemented because it is included in efficiency," said Firdaus.

Then, the DKI Provincial Government also plans to pay a commitment fee in 2021 of £ 24.2 million. In 2022 it will pay back £ 26.6 million, in 2023 it will be £ 26.6 million, and 2024 £ 29.2 million. This payment is still being made so that the five-season racing event can be postponed and starts next year.

"Finally, after several communications they agreed that the 2020 event would be postponed then the commitment fee would be dedicated to the 2021 implementation. So, the commitment fee was not lost," said Firdaus.

DPRD refuses to maintain Formula E

Almost all members of Commission E DPRD DKI agreed to reject Formula E budgeting in the midst of the COVID-19 outbreak. They do not want activities to be postponed, but completely canceled so that financing can be allocated for handling the corona virus.

"We (DKI) have already paid, but if it is carried out in an economic situation for two or three years this is not necessarily good. In the end, the government pays (commitment fee) but there is no return (profit) and investment. That's not bad," said the chairman. Commission E Iman Satria.

Adding, Member of Commission E DPRD DKI Jakarta Merry Hotman doubts the implementation of Formula E can run smoothly. Because, it is feared, foreign tourists are still afraid to come to Indonesia to watch Formula E.

"Is it possible for people from Korea to come to Indonesia to watch Formula E in current conditions? The impact of COVID-19 will not only be until 2021, but in 2023, our economy is just crawling (economy). I believe Formula E will not be achieved until the year 2023, said Merry.

Then, member of Commission E DPRD DKI Jakarta Basri Baco admitted that initially he supported the performance of Formula E. However, after the COVID-19 outbreak became more widespread, he thought that DKI should cancel the racing event.

"We recommend that we use the committed money (31 million pounds) that has been paid for the benefit of the people, especially in a pandemic like this," he said.

Like it or not, the DKI Provincial Government finally complied and attempted to cancel the implementation of Formula E. Project Director PT Jakpro Muhamad Maulana said that his party would negotiate with Formula E Operations to withdraw the £ 31 million commitment fee.

"We are still discussing and negotiating whether it can be withdrawn or not. We are trying to withdraw the whole (committed funds) by postponing (the Formula E racing event)," said Maulana.

"We already have a contract, so if we cancel it we have to get approval from both parties. It's not that easy (canceling) because it is related to the image (image) of Indonesia," he continued.