Formula E Co-Founder Responds to Jakarta's Commitment Fee Debacle

TEMPO.CO, Jakarta - Formula E co-founder Alberto Longo on Wednesday curbed claims suggesting that Jakarta is the only city hosting the electric racing series that pays commitment fee, which was once claimed by Jakarta Legislative Council (DPRD) member from the PSI faction Anggara Wicitra Sastoamidjojo.

Longo, in Central Jakarta’s Menteng on November 24, confirmed that there are other cities that also pay commitment fees which are roughly the same as other Formula E host cities. 

Despite being tight-lipped about the actual cost of this fee, he said that the large costs of hosting a race “could cost a city to spend roughly US$25 million to cover one day of racing,” said the Formula E Operations deputy.

Reported a while ago, PSI politician Anggara claimed that other cities that host a Formula E race are not obligated to the commitment fee clause in their contract, with the exception of Jakarta. 

“Out of 24 cities that host the races, our research suggests, we may be inaccurate but we have tried to look into the cities that host the races, we did not find any commitment fee,” said Anggara in an online discussion on September 3.

City-owned developer Jakpro is said to be bound by contract to Formula E Operations to pay a commitment fee of Rp360 billion annually for agreeing to host the electric formula race series for 5 years. He claims the contract also states that there are 10 percent increases for each passing year, which in total amounts to Rp2.3 trillion. 

“All of those funding come from the city’s regional budget (APBD),” said the PSI politician. 

The politician focused on this subject as the huge amount of funding was suddenly met with the pandemic of 2020, which eventually cancelled the racing event that year even though Jakpro had paid for it in 2019. In 2020, the company has also paid the phase 1 commitment fee for the 2021 race even though - according to Anggara - Jakarta is not included in the 2021 Formula E racing calendar.

“The commitment fees cannot be refunded,” the politician added. 

Read: Formula E Team Arrives in Jakarta to Survey Potential Race Circuit

M YUSUF MANURUNG