Securing rights to hold sporting event could be critical for governor’s political survival, analysts say
or Jakarta Governor Anies Baswedan, a potential contender for the 2024 presidential election according to various political surveys, the Formula E electric motorsport championship could be more than just a sporting event.
While doubts linger over the financial and technical feasibility of holding an auto racing competition in the capital amid a prolonged pandemic, analysts say his chances of winning the upcoming election may depend on whether he could successfully hold the international event next year, his final year in office.
Anies will end his term in October next year and cannot extend because the next Jakarta election will only be held in 2024, the same year as the general elections, as stipulated by the 2017 Regional Elections Law. Securing the rights to hold the sporting event, which will be held annually in Jakarta until 2025, could be critical for his political survival, analysts say.
It is no surprise that the sporting event has become a political point of contention.
Failed interpellation attempt
The opposition has strongly opposed Anies’ bid to hold the Formula E next year, arguing that holding such a costly event would only strain the city’s budget amid a health crisis.
Ima Mahdiah, a councillor from the Indonesian Democratic Party of Struggle (PDI-P) and former staff of previous governor Basuki “Ahok” Tjahaja Purnama, Anies’ rival in the 2017 election, initiated a petition to interpellate Anies on Aug. 26.
The petition was supported by fellow members of PDI-P, the largest party in the City Council, and the Indonesian Solidarity Party (PSI), a small but vocal opposition party.
In a clear attempt to block the PDI-P’s political maneuver, Anies invited representatives from the seven remaining parties in the City Council for dinner at his residence in Kuningan, South Jakarta, the day his political detractors formally filed a proposal to use the interpellation rights to Jakarta Council speaker Prasetyo Edi Marsudi.
Anies easily secured a victory, with councillors from the seven parties rejecting the proposal on the ground that they wanted the Jakarta administration to focus on handling the COVID-19 pandemic instead of dealing with an interpellation. The petition could only go through if it had the support of more than 50 percent of the city's 106 councillors.
The public campaign against the sporting event, however, continues. Several groups, including PDI-P wing organization Banteng Muda Indonesia (BMI), have staged a series of protests in front of City Hall in the past few weeks to support the interpellation.
Unknown individuals have also sent dozens of flower boards displaying criticisms of Anies and appreciation for the PDI-P and PSI to City Hall.
‘Biggest gambit’
Anies insisted that the Formula E, which had been canceled for two consecutive years due to the pandemic, should be held next year.
He said he found it odd that some councillors wanted to interpellate him over a project that had been listed in Jakarta’s previous regional budgets (APBD).
“Formula E had been listed in the previous regional budget, which was deliberated and approved by all members of the City Council. Both city councillors and the Jakarta administration should ensure that all programs listed in APBD were carried out instead of [preventing them],” Anies told The Jakarta Post.
He was optimistic that Formula E would bring many benefits to Jakarta as it was the third largest race in the world and broadcasted live in 150 countries.
“It would give Jakarta a lot of exposure even after the event was over,” Anies said.
Analysts say the sporting event would be Anies’ “biggest gambit”.
“Formula E would be his legacy before he leaves his post as governor. If he could organize the event successfully so that Jakarta benefits economically, gains exposure and profits from the event, his name would be remembered by the public,” said Parameter Politik Indonesia executive director Adi Prayitno.
“However, whether or not he could pull this off amid the pandemic remains a big question.”
If the event turned out to be a flop, it would severely hurt his credibility given the race would use a huge amount of the regional budget without financial assistance from the private sector, Adi said.
The race is especially important for Anies, as he would no longer be under the spotlight after stepping down as governor, with the existing laws stipulating that regional elections be held in the same year as the general election, according to Indonesia Political Review executive director Ujang Komarudin.
“Formula E, which will be held in Jakarta annually until 2025, could be a good chance for Anies to maintain a prominent presence in the public eye and to keep his chance of running for presidency in 2024 alive,” he said.
‘No other option’
Despite his conviction, Anies is facing an uphill battle to ensure that he can hold the Formula E event next year.
“[The opposition] has solid reasons to question the event, doubts still linger that the race would bring profits to Jakarta and not a financial loss,” said Centre for Strategic and International Studies (CSIS) researcher Noory Okthariza.
Jakpro, which is tasked with organizing the race, previously wrote in a feasibility study published last year that the cost of conducting 2020’s Formula E race was Rp 200 billion (US$14 million) to Rp 310 billion and the city would gain Rp 480 billion to Rp 590 billion from ticket sales and the incremental economic impact.
However, a Supreme Audit Agency (BPK) probe later revealed that the study did not include commitment fees – Rp 200 billion to Rp 360 billion per season — and a bank guarantee of Rp 423 billion in its calculation.
BPK findings also suggested that the race could put a strain on the city budget and advised Jakpro find alternative funding from the private sector.
But despite the risk of financial loss, Noory said Anies had no option but to go forward with the race because the Jakarta administration had paid more than Rp 550 billion to Formula E Operations (FEO).
“It’s a dilemma. If the Jakarta administration cancels the race, it will lose a lot of money. If it tries to claim back the money through international court proceedings, it will only hurt Anies’ and Jakarta's reputation. At this point, he has no other option but to press ahead with the plan,” he said. (ahw)
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