Indonesia’s flagship Jakarta–Bandung High-Speed Rail (KCJB) project − known as Whoosh − faces mounting financial pressure after cost overruns pushed total project debt to Rp116 trillion (US$7.2 billion), sparking concern among government and state-owned enterprise (SOE) officials.
The high-speed train, which began operations on October 2, 2023, recorded a US$1.2 billion (Rp19.54 trillion) cost overrun. To cover the shortfall, China Development Bank (CDB) extended an additional loan worth US$230.99 million and 1.54 billion renminbi, equivalent to Rp6.98 trillion.
However, Finance Minister Purbaya Yudhi Sadewa rejected the idea of charging the project’s debt to Indonesia’s state budget (APBN), insisting it must be handled by the SOE consortium itself.
“I haven’t been contacted about this issue yet. But since KCIC is under Danantara, they have their own management and dividend income,” Purbaya said during a media gathering in Bogor on Friday, October 10, 2025.
He emphasized that Danantara − the state investment holding company managing SOE assets − receives around Rp80 trillion (US$4.8 billion) in annual dividends and should therefore be capable of handling the debt without government assistance.
“Don’t make it the government’s burden again. If it is, then everything − including the dividends − comes back to us. The idea is to separate private and government responsibilities,” he said.
Echoing Purbaya’s statement, Director General of Financing and Risk Management at the Finance Ministry, Suminto, clarified that the project’s financing is strictly business-to-business (B2B).
“There is no government debt involved because this was carried out by a consortium of Indonesian and Chinese companies, with the Indonesian consortium owned by PT KAI,” Suminto asserted.
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