Indonesia's Whoosh High-Speed Train Debt Mechanism Discussed with China, President Gives Green Light

The payment mechanism for Indonesia's Jakarta-Bandung High-Speed Train, known as Whoosh, has been discussed with China, with President Prabowo Subianto reportedly giving his approval for the scheme to proceed. Chairman of the National Economic Council, Luhut Binsar Pandjaitan, held discussions on the matter with Zheng Shajie, Chairman of China's National Development and Reform Commission (NDRC). In Beijing, Luhut stated, "When I met with Chairman Zheng Shajie of the NDRC, who is an old friend, I also touched on the high-speed train and also on the problem of the Whoosh debt," as quoted by Antara. He emphasized that the discussion should not stop at the policy level and that urgent technical follow-up by relevant ministries and agencies is crucial. "We must not let it pass by, we are also the losers. There must be technical follow-up and we talk about how the debt payment structure is," Luhut asserted. He confirmed that Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Suahasil Nazara, and President Prabowo are all aware of the discussion. "Because the President has given the green light, it's just execution. From the National Economic Council, help it to be delivered quickly to China because of the partnership, so it looks like it will go smoothly," he added. Luhut also claimed that China has no objections to discussing the payment mechanism, stressing the immediate need to resolve technical issues to prevent further delays in debt settlement. Furthermore, Luhut brought up the potential for extending the Whoosh line to Surabaya during the meeting. He noted that the President would need to appoint a coordinating minister to oversee the continuation of this project. The discussions on debt payments are proceeding concurrently with the restructuring of the ownership of KCIC. The government is finalizing the transfer of 60 percent of shares, previously held by the BUMN consortium through PT Pilar Sinergi BUMN Indonesia, to the Ministry of Finance. The remaining 40 percent will continue to be held by the Chinese consortium, Beijing Yawan HSR Co. Ltd. The Ministry of Finance is currently conducting due diligence and evaluating the value of the shares to be transferred. Previously, Rosan Roeslani, CEO of Danantara Indonesia, had assured that the transfer of KCIC's management to the Ministry of Finance would proceed despite the change in Finance Minister from Purbaya Yudhi Sadewa to Suahasil Nazara. Earlier, Purbaya had indicated that debt restructuring for Whoosh was being directed towards a payment scheme of approximately IDR 1 trillion annually, with a tenor of up to 80 years, as part of the ongoing process to settle the fast train project's obligations. Information Source: VOI English