DKI Provincial Government Promises That The 2022-2024 Formula E Budget Will No Longer Use APBD

ILLUSTRATION/UNSPLASH

JAKARTA - The DKI Provincial Government has emphasized that the cost of implementing the next Formula E will no longer use the DKI Regional Revenue and Expenditure Budget (APBD).

This answers the refusal of several DPRD (Regional House of Representatives) factions to ratify the Formula E budget if it is included in the APBD discussion.

"There are no additional costs from the APBD for the implementation of Formula E, both for the commitment fee and the costs for the implementation of 2022, 2023, and 2024", wrote the DKI Provincial Government statement on Wednesday, September 29.

The DKI Provincial Government emphasized that the commitment fee payment that was charged from the DKI APBD was only made from the 2019 APBD. After the pandemic, the annual commitment fee payment was no longer paid.

Because PT Jakarta Propertindo (Jakpro) BUMD will hold Formula E purely business to business (B to B) using sponsor funds.

"The annual implementation cost of around IDR 150 billion is not paid by the APBD but will come from sponsorships that will be carried out by Jakpro", he said.

The DKI Provincial Government also explained that it had withdrawn several bank guarantee funds worth IDR 423 billion. This was agreed in a new agreement with Formula E Operation (FEO). So that the disbursed budget no longer reaches nearly IDR 1 trillion.

As for the funds that have been paid, only the commitment fee payments in 2019 amounted to IDR 360 billion and the commitment fee in 2020 amounted to IDR 200 billion or a total of IDR 560 billion.

"The commitment fee is IDR 560 billion. In the latest cooperation agreement, there is no need for a bank guarantee to be made", he explained.