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Home Formula E

Possible Formula E race sparks political conflict in Indonesia

September 9, 2021
In Formula E
Possible Formula E race sparks political conflict in Indonesia
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Anies Baswedan, Governor of DKI province, in Jakarta, wants to host an E-Prix Formula E in the region, which has caused a political hurricane, with his opponents seeking to prevent the event from taking place at all costs because, according to them, it allocates budget to something that is not a priority. 

The Indonesian Solidarity Party evaluates that the sport event is no longer attractive to the public. The deputy chairman of DKI DPRD Commission E of the PSI faction, Anggara Wicitra Sastroamidjojo stated that even a car company such as Mercedes-Benz disengaged from the competition.

The team became the third to quit the electric category following BMW and Audi last December. “This is a strong warning to Governor Anies, who still insists on holding a Formula E in Jakarta,” Anggara said in a statement.

Related content: Balance for Mercedes: Endurance paid off with a double win

According to the political leader, with the absence of the big three manufacturers, it is difficult for the organizers to make a profit, and the DKI provincial government has the potential of not getting a return on investment, even losing, if it continues to impose the race.

“This is not only our analysis, but Mercedes-Benz said it was pulling out because Formula E no longer provides benefits in terms of technology transfer and marketing,” Anggara said.

Counter-movements

The PSI and PDI-P factions at Congress had proposed the right of interpellation against Governor Baswedan regarding Formula E. All 33 councilors from both parties signed the proposal.

They stated that they wanted to ask the regional leader why the DKI Provincial Government insists on holding Formula E in 2022 and it was brought to Instruction Number 49 of 2021, as one of the priority issues.

In addition, the two parties found potential losses from the event after the engagement committee and the bank guarantee conducted a feasibility study calculation and COVID-19 pandemic condition, which is still unclear when it will end.

The potential loss mentioned is based on an initial feasibility study by PT Jakarta PROPERindo firm, which states that the Formula E event will generate some profit, but will leave a Rp 3.24 trillion commitment fee and a 5-year bank guarantee on its back.

Read also: Günther Signs with Nissan and Continues on Formula E Track

If the two components are included, the implementation cost will rise to Rp 4.48 billion. Compared to the profit claimed by Jakpro, the DKI provincial government will actually lose Rp 1.36 trillion.

The Formula E feasibility report was conducted assuming normal conditions. The political parties proposing the right of interpellation against Anies Baswedan believe that the negative impact will be much greater if it is done with the current state of the pandemic.

So far the organizers of the electric category have not officially pronounced on whether Jakarta will be on the 2022 calendar.

Written by I Jhonattan González

Tags: Formula EIndonesiaJakarta
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Jhonattan González

Jhonattan González

Journalist: Sports, motorsport, sustainability and electric mobility

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