October 24, 2025 | 08:57 am
TEMPO.CO, Jakarta - Chinese Ambassador to Indonesia, Wang Lutong, affirmed that Indonesia’s proposal to China to negotiate debt restructuring for the Jakarta-Bandung High-Speed Railway, or Whoosh, is reasonable given the enormous scale of the project.
"Regarding financial issues, that's normal for a high-speed railway project of this size—it takes years to break even," Wang said when speaking to Antara at the Chinese Embassy in Jakarta on Thursday, October 23, 2025.
Wang expressed the Chinese government's pride in the performance of the Whoosh service, which has transported 12 million passengers since launching two years ago. He believes the railway has had a significant positive economic and social impact on Indonesia.
"We are very proud of it, and its operations are running very well. However, of course, there are some details we are currently discussing with the Indonesian government," he added.
While declining to elaborate on the specific discussions, Wang confirmed that the two governments are in constant communication to ensure the project operates safely and sustainably. He maintained that the project isn't facing "financial difficulties" because passenger numbers are continually increasing.
"I wouldn't say there are any financial difficulties, because so far we're doing well with increasing passenger numbers. For further details related to Whoosh, we are discussing [them] with both governments and relevant ministries," said Wang.
Meanwhile, Danantara Indonesia Chief Operating Officer (COO) Dony Oskaria confirmed that the debt restructuring negotiation process is ongoing. Danantara is preparing to dispatch a new negotiating team to discuss crucial terms with the Chinese government.
"The negotiation points are related to the loan term, interest rates, and also several currencies that we will also discuss with them," Dony said.
The total investment for the project is approximately US$7.27 billion, or nearly Rp121 trillion. 75 percent of this cost is financed through a loan from the China Development Bank (CDB) at an annual interest rate of 2 percent.
National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan previously announced that President Prabowo Subianto would issue a presidential decree (Keppres) concerning the debt settlement for the KCIC project.
To date, the Indonesian government is still evaluating two primary debt settlement options: transferring the obligations to the government or injecting additional funds into PT Kereta Api Indonesia. Despite these options, the government continues to rely on Danantara to lead the project's debt restructuring efforts.
Editor’s Choice: Danantara Confident Whoosh Debt Restructuring Will Conclude This Year
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