Indonesia Weighs Using State Budget to Repay Whoosh Debt

November 8, 2025 | 09:35 pm

TEMPO.CO, Jakarta - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, recently discussed the possibility of using Indonesia's State Budget (APBN) to settle outstanding debts related to the Jakarta-Bandung High-Speed Train project, also known as the Whoosh.

The proposal to utilize government funds to cover the project's arrears is currently under review.

"It's still under discussion," Hartarto said in Jakarta on Friday, November 7, 2025. However, he did not provide further details on the status of the talks.

This statement follows earlier comments from President Prabowo Subianto, who pledged to take responsibility for resolving the debt-related issues surrounding the Whoosh project. The President assured that the government could allocate Rp 1.2 trillion annually to address the arrears. He also suggested that funds seized from corruption cases could be used to help cover the debt.

Achmad Nur Hidayat, an economic observer from UPN Veteran Jakarta, expressed concerns about the feasibility of this plan. While acknowledging the moral appeal of using corruption funds to pay off the debt, he pointed out that the legal and institutional challenges could be significant.

He explained that money seized from corrupt individuals is categorized as Non-Tax State Revenue (PNBP), which must go through the formal APBN process for allocation.

HMoreover, Hidayat noted that the amount of money seized through corruption varies annually. In 2024, for example, the total proceeds from the Corruption Eradication Commission (KPK) amounted to just Rp637 billion, while the annual repayment obligation for the Whoosh project exceeds Rp1.2 trillion.

"Even if the entire amount seized from corruption were directed to the project, it would not be sufficient to meet the annual debt obligations," Hidayat said.

The expert also raised concerns about potential governance and auditing issues that could arise if these funds are used without clear guidelines.

"Fiscal creativity is necessary, but it must not undermine the sustainability of public finances," he added. "If funding sources are irregular, it could increase fiscal risks and damage the credibility of the state's financial management."

The Jakarta-Bandung High-Speed Train project officially began operations in October 2023, with an ownership structure of 60 percent held by an Indonesian consortium and 40 percent by China.

Initially, the project was budgeted at US$5.5 billion (Rp89.6 trillion), but costs have since ballooned to US$7.27 billion (Rp118.4 trillion) due to unforeseen cost overruns.

Of the additional US$1.2 billion, 75 percent was financed through new loans from the China Development Bank, while the remaining 25 percent was covered by additional equity from the Indonesian consortium, Kereta Cepat Indonesia China (KCIC).

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