JAKARTA - The DKI Jakarta Provincial Government has succeeded in obtaining a reduction in the commitment fee for Formula E, which was originally estimated at Rp. 2.3 trillion to Rp. 560 billion.
President Director of PT Jakpro Widi Amanasto explained the reason why DKI was able to get a lower cost burden. He said this was thanks to Jakpro's strategy of re-negotiating with Formula E Operation (FEO).
In the negotiations, Jakpro asked FEO to understand that in the conditions of the COVID-19 pandemic, Formula E could not be implemented if it was expensive.
"Yes, because of the COVID-19 condition. We use tactics in negotiations. Now in our condition, what is it like? We'll take it down too. Because it's impossible to do if it's according to the initial business plan that we made. It's very difficult for us to implement it," said Widi in a meeting with the DKI DPRD, Wednesday, October 6.
Meanwhile, Managing Director of Jakarta EPIX PT Jakarta Propertindo (Jakpro), Gunung Kartiko admitted that Jakarta's commitment fee payment is indeed more expensive than cities in other countries.
The reason is that the commitment fee in Jakarta will also be used for a number of needs for organizing Formula E and paying for event organizers from the FIA Formula E.
"Actually, this goes back to the organizer's location in the form of costs that will be incurred by FEO, one of which is crew dispatch, athlete delivery, car delivery, then hundreds of boxes that will also be sent here including the grand stand, stage, prizes too, it will return to here," he explained.
Previously, the DKI Jakarta Provincial Government explained that the budget that had been disbursed by the APBD to organize Formula E was currently reduced from Rp. 983 billion to Rp. 560 billion.
This is because DKI has withdrawn bank guarantee funds of Rp. 423 billion based on the results of re-negotiations between the DKI Provincial Government and Formula E Operation (FEO).
"The commitment fee is IDR 560 billion. In the latest cooperation agreement, there is no need for a bank guarantee to be made," wrote the statement from the DKI Provincial Government.
Then, the implementation of Formula E was also trimmed from the plan to be held for 5 years to 3 years. So that, furthermore, the cost of implementing the next Formula E will no longer use the DKI Regional Revenue and Expenditure Budget (APBD).
"There are no more additional costs from the APBD for the implementation of Formula E, both for the commitment fee and the costs of organizing 2022, 2023 and 2024," he wrote.
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