Formula E Deemed Waste of Money; Jakarta Govt Mentions MotoGP Mandalika

TEMPO.CO, Jakarta - The Jakarta Provincial Government responded to the accusation that hosting Formula E motor race would be a waste of the Regional Budget or APBD. The city’s Communications and Information Office on Wednesday, September 29, compared it with other international events.

“Almost all global events require government funding, including the 2018 Asian Games and Moto GP Mandalika in March 2022,” the city government noted.

According to the city government, hosting Asian Games, MotoGP Mandalika, and Formula E are not a waste of the state budget or regional budget because the events would bring economic and reputational benefits for Indonesia.

Indonesia, particularly the capital city of Jakarta, would gain economic stimulus and its multiplier effects, as well as good reputation in the global. The city could also promote tourism and earn investment.

The provincial government underlined that the infrastructure investment would be optimal if it is used more than once. “We will actually suffer loss if Formula E is only implemented once because the cost of racing infrastructure is one of the largest spending item.”

However, the new agreement between the city-owned developer PT Jakarta Propertindo (Jakpro) and the Formula E Operations (FEO) decided that the eco-friendly motor race would be held for three years; in 2022, 2023, and 2024. The adjustment was made due to the COVID-19 pandemic.

Jakarta regional government has been receiving harsh criticism for its plan to host Formula E. The biggest critic is the PSI faction of the Regional Legislative Council (DPRD) that highlighted the use of the regional budget amid the COVID-19 pandemic.

Read: Jakarta Sticks to Formula E 2022 Plan as BPK Not Recommend Postponement

M YUSUF MANURUNG