Disbursing Funds Of Almost IDR 1 Trillion, Can Anies Baswedan Hold The Next 2022 Formula E?

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

JAKARTA - DKI Jakarta Governor Anies Baswedan targets the Formula E title to take place in June 2022. This target is stated in the Governor's Instruction (Ingub) Number 49 of 2021 concerning the Settlement of Regional Priority Issues for 2021-2022.

In addition to Formula E, the Ingub appendix contains 28 issues that are targeted for completion in 2021-2022. Includes, RPJMD, fiscal and tax, DKI assets, licensing reform, revision of regulations regarding BUMD, RTRW and RDTR, TOD, Taman Ismail Marzuki, JIS Stadium, regional development.

Furthermore, floods, clean water, waste water, solid waste, climate change and air pollution control, ducting, DP Rp0 houses, villages, flats, transportation regulations, Jaklingko, roads/bridges, Fatmawati-TMII MRT, KDPBU LRT, bicycles, transformation digital, and performance management.

The Formula E event is one of the spectacular things if it is realized in Jakarta. Although there are many controversies that are not proportional to the benefits of the provincial government, Anies remains confident.

Unfortunately, the noise of a 702 kg car paving in Jakarta on June 6, 2020 was blocked by the COVID-19 storm. Not yet saddened by the failure to hold this event, the DKI Jakarta Representative Audit Board issued a surprising audit of the DKI Provincial Government's financial transactions.

Disbursed Nearly IDR 1 Trillion

In a report issued on June 19, 2020, BPK noted that Anies had paid a commitment fee to Formula E Operations Limited (FEO) and a Bank Guarantee of almost Rp1 trillion.

"Based on research on financial transactions related to the implementation of Formula E, it is known that the payments made to FEO are worth GBP53,000,000 or equivalent to Rp.983,310,000,000," said Head of BPK DKI Jakarta Representative Office Pemut Aryo Wibowo to VOI.

In detail, there is a commitment fee paid in 2019 worth Rp360 billion. Furthermore, in 2020, the commitment fee paid is equivalent to IDR 200.3 billion. Then, the Bank Guarantee that was paid was worth Rp423 billion.

Burden for DKI APBD

The BPK noted that the entire cost of financing the electric-powered car racing event, which had been prepared since 2019, was still borne by the DKI APBD funds.

"Funding for the 2019/2020 Formula E season, both through the Youth and Sports Agency (Dispora) budget and PT Jakpro regional capital participation (PMD), the financing burden is still very dependent on DKI Jakarta Provincial APBD funds," said Pemut.

In fact, Anies has issued Governor's Regulation Number 83 of 2019. In its content, Anies has assigned BUMD PT Jakpro as the organizer to be able to seek sponsorship or cooperation from other parties.

Pemut said this problem would result in PT Jakpro not being able to independently manage Formula E activities, thus increasing the risk of failure of the implementation.

Withdraw Money at Bank Guarantee

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 organizing BUMD managed to withdraw from the bank guarantee worth Rp423 billion. Unfortunately, BPK noted that the commitment fee was not successfully withdrawn.

"The stage 1 fee for the 2020/2021 season which has been paid to the FEO in the amount of GBP11,000,000.00 or equivalent to Rp. 200,310,000,000 cannot be withdrawn," said Pemut.

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

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

BPK assesses that the DKI Provincial Government has not been optimal in conducting negotiations. Therefore, BPK requests PT Jakpro as the organizer of Formula E and representatives of the DKI Provincial Government to renegotiate with the FEO regarding confirmation and clarification of the status of the sustainability of the cooperation and the status of the funds that have been deposited.

Deputy Governor of DKI Jakarta Ahmad Riza Patria responded to the results of the BPK audit regarding Formula E. Riza said, the DKI Provincial Government still wants to hold Formula E. The plan is that the international car racing will start in 2022.

"Because of the COVID-19 Pandemic, in 2020 and 2021 it is not possible. We have decided together with the relevant parties, we will carry out Formula E in 2022. Hopefully, in that year the atmosphere will be different from the pandemic. drastically," replied Riza.