Indonesia Restructures Whoosh Debt With US$56 Million Annual Payments

September 9, 2026 | 06:26 am

TEMPO.CO, Jakarta - Indonesia's Finance Ministry revealed that the debt restructuring for the Jakarta-Bandung High-Speed Railway (KCJB), known as Whoosh, sets an annual installment scheme of around Rp1 trillion (approximately US$56.7 million) over an 80-year tenor.

Speaking during a media briefing in Jakarta on Tuesday, Finance Minister Purbaya described the annual repayment burden as relatively manageable for the government’s fiscal capacity.

"The total debt is large, but it has been restructured over 80 years, with annual installments hovering around Rp1 trillion—slightly less in some years—fluctuating from year to year," Purbaya noted.

Under the restructuring plan, the ministry will acquire a 60 percent stake in PT Pilar Sinergi BUMN Indonesia (PSBI)—a consortium comprising state rail operator PT KAI, PT Wijaya Karya, PT Jasa Marga, and PTPN III—from investment agency Danantara Indonesia.

The transaction involves zero payment to Danantara, meaning the ministry receives the equity participation at no upfront cost while assuming full responsibility for future debt service through a designated Special Mission Vehicle (SMV) or Public Service Agency (BLU).

The remaining 40 percent stake in the operating company, PT Kereta Cepat Indonesia China (KCIC), held by a Chinese consortium, will remain unchanged.

The formal transfer of debt management responsibility for the high-speed rail project from Danantara to the Finance Ministry is scheduled for September 15, 2026.

While the ministry initially considered appointing both the Indonesia Investment Authority (INA) and state infrastructure financing agency PT Sarana Multi Infrastruktur (SMI) to manage the obligations, Purbaya indicated that the favorable repayment schedule allows the task to be consolidated under a single state-backed entity.

"Looking at the annual burden, it is sufficient to be handled by one SMV under the Ministry of Finance," Purbaya added, noting that managing the restructured debt could yield annual returns of up to Rp800 billion (US$45.4 million) for the appointed entity.

Following the transfer of debt management to the government, the Finance Ministry plans to extend the high-speed rail network across Java toward East Java.

"Once under government control, we plan to extend the route to East Java," Purbaya noted, adding that preliminary discussions with Beijing have yielded positive interest.

"I have spoken with the Chinese Minister of Finance and relevant officials there, and they appear keen on the proposal,” he added.

Purbaya expressed confidence in the capacity of the ministry's state-owned financing entities, emphasizing that individual SMVs under the Finance Ministry typically record annual profits ranging from Rp3 trillion to Rp4 trillion rupiah (US$170.1 million to US$226.8 million).

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