TEMPO.CO, Jakarta - Senior economist at the Institute of Economic and Financial Development (Indef), Faisal Basri, highlighted that the ambitious government project Whoosh high-speed train costs significant losses for state-owned enterprises, including PT Wijaya Karya (WIKA). WIKA has suffered over Rp7.12 trillion of loss throughout 2023.

Faisal believed the high-speed train project the government mandated for state-owned companies to handle was above their capabilities. The burdened companies could collapse if the situation is not resolved and potentially become a time bomb for Prabowo Subianto’s administration. "They’ll explode one after another,” he said on Tuesday, July 16, 2024.

In addition to Wijaya Karya, the Indonesian railway company PT KAI is predicted to suffer from the Rp108 trillion Whoosh project. As of January 2024, KAI has cut the Argo-Parahyangan train services because there has been no improvement in Whoosh's performance. The state is at risk of having to take over the entire project by itself if no reprieve is in sight.

Faisal said that forcing the high-speed train project on state-owned companies would result in more state funding for the companies. As many as 16 state-owned enterprises will receive a total of Rp44.24 trillion in government capital next year.

Wijaya Karya President Director, Agung Budi Waskito, previously said that the high-speed train project contributed to WIKA’s financial losses, with a significant portion attributed to PT Pilar Sinergi BUMN Indonesia.

PBSI, PT KAI subsidiary, holds PT KCIC’s majority share at 60 percent. However, WIKA maintains a 38 percent stake in PSBI. Waskito said WIKA’s financial losses stemmed from investments made in the high-speed train projects, necessitating the issuance of bonds, which further burdened their finances. Agung claimed that WIKA had already disbursed Rp6.1 trillion for the project.

“There is also an additional Rp5 trillion that remains disputed (unpaid), so it’s nearly Rp12 million” Waskito revealed during a meeting with the House of Representatives (DPR) Commission VI on Monday, July 8, 2024.

WIKA reportedly recorded a net loss of Rp7.12 trillion in 2023, which is a significant increase of 11,860% compared to the Rp59.59 billion loss reported in the previous year.

HAN REVANDA PUTRA

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