Jakarta, CNN Indonesia —
Provincial Government (Pemprov) DKI Jakarta responding to a statement calling the holding of an electric car racing event Formula E in the capital is a waste of the Regional Revenue and Expenditure Budget (APBD).
In a written statement issued by the provincial government, it is stated that almost all world events, from the Asian Games, Olympics, Formula 1, MotoGP to Formula E require funds from the government. Including the 2018 Asian Games and the Mandalika Moto GP in March 2022.
“The 2018 Asian Games, the Mandalika MotoGP in March 2022, and the June 2022 Formula E are not a waste of the APBN/APBD, because they provide extraordinary economic benefits and reputation for Indonesia,” wrote the DKI Provincial Government, Wednesday (29/9).
For economic benefits, it is explained that it can provide economic stimulus and multiplier effects. While the reputation benefits, the image of Indonesia and Jakarta will be better in the world, so that it can stimulate tourists and investment.
Furthermore, in the written statement, the provincial government stated that there were no funds sourced from the APBD for the implementation of the Formula E event in the next few years.
Due to the pandemic, it is explained that a review has been carried out on all Formula E collaborations in all cities. The result of the new agreement between Jakpro and FEO is that the implementation period is adjusted to 3 years, namely 2022, 2023, and 2024.
Provincial government declares commitment fee fee which has been paid in the amount of Rp560 billion. But that’s not just for the first year of the event, but all the years. The fee was paid prior to the Covid-19 pandemic.
“There are no additional costs from the APBD for the implementation of Formula E, both for 2022, 2023 and 2024. The annual implementation cost is around Rp. 150 billion, not paid by the APBD but will come from sponsorship that will be carried out by Jakpro,” the provincial government wrote.
Previously, the waste of the implementation of Formula E was mentioned by the PDI-P faction in the DKI Jakarta DPRD.
PDIP stated that there was a potential for budget waste of up to Rp4.48 trillion to organize the Formula E electric car racing event for five seasons in Jakarta.
“There is the potential to waste a budget of Rp4.48 trillion. A very large amount of money for a program that suddenly becomes a priority issue,” said PDI-P faction member Manuara Siahaan, Tuesday (31/8).
(Yes / DAL)
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