Why Minister Purbaya Wants Indonesia's High-Speed Train Debt Moved to Danantara

18 hours ago 4

October 14, 2025 | 09:36 am

A train officer is posing for a photo on the Jakarta-Bandung High-Speed Train, or Whoosh, at Halim Station, Jakarta, Indonesia, September 20, 2023. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa reiterated that the debt for the Jakarta-Bandung High-Speed Train (Whoosh) project will not be covered by the state budget (APBN). He believes the debt should be covered by Danantara.

Purbaya stated that Danantara, as the managing body for state-owned enterprises (SOEs), has already taken more than Rp80 trillion in SOE dividends. The Minister of Finance said Danantara should resolve the dividend issue. "Using the APBN is a bit ridiculous, because the profits go to them, but the losses fall on us. If they take it, they should take it all," Purbaya said in Tanjung Priok, Jakarta, Monday, October 13, 2025.

Previously, Danantara Chief Operating Officer Dony Oskaria stated that Danantara is preparing two options to settle the debt for the high-speed rail project. The first is by adding equity or handing over the Indonesia-China High-Speed Train (KCIC) infrastructure to the government.

"Whether we add equity or hand over the infrastructure, like other railway industries whose infrastructure is government-owned. We are currently reviewing these two options," he said.

The Jakarta-Bandung High-Speed Train project officially began operations in October 2023, with 60 percent ownership by an Indonesian consortium and 40 percent by China. The initial project cost was US$5.5 billion (Rp89.6 trillion), but ballooned to US$7.27 billion (Rp118.4 trillion) due to cost overruns.

Of the US$1.2 billion cost overrun, 75 percent was covered by a new loan from the China Development Bank, while 25 percent came from additional equity from KCIC.

Anastasya Lavenia Yudi contributed to this article.

Editor's Choice: Indonesian Govt Will Not Use State Budget to Pay Off High-Speed Train Debt, Says Minister

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