Having Different Opinion From Deputy Governor Riza, Gerindra Says Formula E Budget Can Be Funded By SOE, Not Private

DKI Jakarta Governor Anies Baswedan (Photo: @aniesbaswedan)

JAKARTA - Member of the Gerindra faction of the DKI Regional Representative Council (DPRD), Syarif, considers that the financing for the implementation of Formula E that has not been paid off does not mean that the private sector is involved as a sponsor.

This statement is different from the Deputy Governor of DKI, Ahmad Riza Patria, who is also a Gerindra Party cadre, who said that the Formula E budget will involve the private sector.

Syarif said that the Supreme Audit Agency (BPK) recommended that the DKI Provincial Government should carry out independent financing of Formula E apart from the Regional Budget (APBD). According to Syarif, BPK did not mention the private sector to cover the implementation needs.

"There is a recommendation for financial independence. But, it doesn't mention the private sector, you know. It can be government to government. In my opinion, the sound of independence should not be reduced to private companies", Syarid told reporters, Thursday, September 16.

Syarif explained, the point of financial independence is that the implementation of Formula E is not charged 100 percent from the DKI Regional Budget. Although it can be charged from the private sector, Syarif views it must involve state-owned enterprises (BUMN).

"Coordinating the private sector must have a body. It can be with SOEs. Don't mean pure private, yes. Our source of financing can be from the Regional Budget (APBD) and State Budget (APBN). So, it can be from SOEs, it can be from a subsidiary of SOEs", said Syarif.

As is known, the Governor of DKI Jakarta Anies Baswedan is required to pay a commitment fee for Formula E for 5 years. The problem is, Anies must pay off the commitment fee before the end of his term of office.

Seeing the condition of the APBD which is a bit "strangled" due to the COVID-19 pandemic, Deputy Governor of DKI Jakarta, Ahmad Riza Patria, admitted that his party will look for sources of funds other than the APBD, namely in the form of sponsors from the private sector.

"Later on, the program will not only be charged to the APBD. In fact, it will be borne by the private sector, by the sponsor", Riza said on Tuesday, September 14.

Currently, the DKI Provincial Government has disbursed the APBD of almost IDR 1 trillion. In detail, the payment of a commitment fee for 2 terms paid in 2019 was 20 million pounds sterling or equivalent to IDR 360 billion, a term 1 commitment fee in 2020 was 11 million pounds sterling or equivalent to IDR 200 billion, and a bank guarantee of 22 million pounds sterling or IDR 423 billion.

Until finally, the payment of the commitment fee was postponed by Anies due to the COVID-19 pandemic. However, Anies still has to pay the Formula E commitment fee in term 2 2020, the 2022/2023 session 26.6 million pounds sterling, and the 2023/2024 session 29.2 million pounds sterling.

However, he considers that the commitment fee payment for 5 years of Formula E implementation does not have to be repaid in the near future. It is possible, said Riza, that the commitment fee could be paid by the sponsor if Formula E was held in 2022.

"It will be paid off later, in the following years. Does it all have to be paid off this year? No", he said.