TEMPO.CO, Jakarta – Chinese Ambassador to Indonesia Wang Lutong said discussions on restructuring the debt tied to the Jakarta-Bandung high-speed railway, known commercially as Whoosh, are still ongoing between the Indonesian and Chinese governments.
Speaking after the China-Indonesia Think Tank and Media Forum in South Jakarta on Wednesday, June 24, Wang said communication between both sides remains active and constructive, although details of the negotiations cannot yet be made public.
“We are in close communication with key stakeholders and relevant ministries. Everything is progressing well,” Wang told reporters.
The Indonesian government has previously indicated that negotiations over the debt restructuring have entered their final stage. When asked whether an agreement had already been reached, Wang declined to provide a direct answer, saying only that discussions are continuing.
“It is still not possible to disclose the details while discussions are ongoing. What is certain is that everything is proceeding according to plan,” he said.
Debt Burden of the Whoosh Project
Indonesia has been seeking to restructure loans used to finance the Jakarta-Bandung high-speed railway project, which began commercial operations in 2023 under the brand name Whoosh.
The project cost approximately US$7.2 billion, or around Rp120 trillion, making it one of Indonesia’s largest infrastructure investments.
About 75 percent of the funding came from loans provided by the China Development Bank, while the remaining 25 percent was financed through equity contributions from PT Kereta Cepat Indonesia China (KCIC), the project’s operating company.
KCIC is jointly owned by Indonesian and Chinese consortiums. Indonesia’s PT Pilar Sinergi BUMN Indonesia (PSBI) holds a 60 percent stake, while the remaining 40 percent is owned by China’s Beijing Yawan HSR Co. Ltd.
Construction on the railway began in 2016 but was later affected by significant cost overruns. The project’s total investment consists of an initial estimated cost of US$6.02 billion and an additional US$1.21 billion in overruns.
Restructuring Talks Near Completion
Efforts to restructure the project’s debt have been under discussion since last year, involving both the Indonesian government and the sovereign investment fund Danantara.
In November 2025, Indonesia dispatched a technical team to begin formal negotiations with Chinese counterparts regarding the restructuring framework.
Earlier this year, Danantara Chief Operating Officer Dony Oskaria said the process had entered its final phase.
“All studies and assessments have been completed. What remains is the formal process, including signing and related procedures,” Dony said at the Presidential Palace complex in Jakarta on April 7.
A few weeks later, Finance Minister Purbaya Yudhi Sadewa said negotiations had effectively concluded and that the outcome had already been communicated to the Chinese government.
“It’s finished. It just needs to be announced,” Purbaya told reporters in Jakarta on April 22.
He did not disclose details of the agreed restructuring mechanism but suggested that both Indonesian and Chinese stakeholders would share the financial consequences arising from the project.
“Our percentage, their percentage of payment—something along those lines. So both sides will bear part of the burden,” Purbaya said.
Ilona Estherina contributed to the writing of this article.
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