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JAKARTA - So far, the DKI Provincial Government has stated that the commitment fee payment for three years of Formula E implementation to Formula E Operation (FEO) is IDR 560 billion, from 2022 to 2024.

However, it turns out that the commitment fee that must be paid is more than that. This was revealed in the Audit Result Report (LHP) of the Supreme Audit Agency (BPK) on the 2021 DKI Jakarta Provincial Government financial statements.

In the BPK LHP, it was stated that the DKI Youth and Sports Service (Dispora) had paid a commitment fee for Formula E of IDR 560 billion or 31 million pounds. This payment comes from the 2019 and 2020 APBD.

"The prepaid service fee of Rp560,309,999,255 which has been paid equivalent to £31,000,000.00 is a commitment fee for the obligations for stage 1 and stage 2 of 2019 as well as stage 1 of 2020 obligations according to the long-term contract in the City Host Agreement ," wrote the Head of the DKI Jakarta BPK Representative, Dede Sukarjo in the BPK LHP, quoted Monday, June 20.

Then, the COVID-19 pandemic took place and the Formula E event in Jakarta had to be postponed for 2 years, from 2020 to 2022. At that time, BUMD PT Jakarta Propertindo as the organizer carried out renegotiations with FEO to ask for a reduction in the cost of organizing.

The results of the renegotiation, as Jakpro claims, reduced the commitment fee to only IDR 560 billion in three years of implementation, from the previous plan of IDR 2.3 trillion for five years of implementation. Thus, the DKI Provincial Government does not need to disburse additional commitment fees from the APBD.

However, the BPK LHP revealed that the actual cost of the commitment fee was around IDR653 billion or £36 million. This was found by BPK in the revised feasibility study document which was compiled by Jakpro.

In the document, it is stated that there is still a lack of commitment fee payments of IDR 90.7 billion or the equivalent of 5 million pounds. The agreement is that PT Jakpro will pay for the shortfall from company funds without using the APBD.

"The payment has been made in the amount of £31,000,000.00 and leaving a commitment fee of £5,000,000.00. The remaining commitment fee will be paid by PT Jakpro without using the DKI Jakarta Provincial APBD funds," said Dede.


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