Jokowi Summons Officials over WIKA's Whoosh Project Losses

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo summoned officials involved in the Jakarta-Bandung High-Speed Railway (HSR) project, also known as the Whoosh project, to the Presidential Palace on Wednesday, July 24. The meeting comes amidst accusations from PT Wijaya Karya (WIKA), a state-owned construction company, that the project is a contributing factor to its financial losses.

The state head met with Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan who chairs the HSR Committee, Dwiyana Slamet Riyadi, Director of PT Kereta Cepat Indonesia China (KCIC), the company responsible for developing the project, and Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo. 

The meeting took place around 10:45 Jakarta time (WIB), with Luhut reportedly entering the palace through a non-public entrance. Both Dwiyana and Kartika emerged from the meeting about an hour later.

“The President wanted to see the passenger trends. And also the infrastructure, access roads, everything is being evaluated,” Dwiyana said. “We will collaborate with China moving forward, and evaluate current performance.”

Previously, WIKA's President Director, Agung Budi Waskito, revealed that the bullet train project was a significant factor in the company's financial losses. He attributed the losses primarily to high-interest expenses incurred throughout 2023, with additional losses stemming from their involvement with PT Pilar Sinergi BUMN Indonesia (PSBI).

PSBI, a subsidiary of state-owned railway company PT Kereta Api Indonesia (KAI), holds a majority stake of 60% in KCIC, while WIKA holds 38% of PSBI's shares. WIKA reported a staggering loss of Rp7.12 trillion (US$490 million) in 2023, an 11.86% increase compared to the previous year's loss of Rp59.59 billion (US$4.1 million).

Agung elaborated that the company's losses stemmed from investments made in the Whoosh project, which required issuing bonds that added to their financial burden. He said that WIKA had already disbursed Rp6.1 trillion (US$420 million) for the project, with an additional Rp5 trillion (US$340 million) still outstanding, bringing the total investment to nearly Rp12 trillion (US$830 million).

When questioned about WIKA’s claims, Dwiyana deferred comment. “Just ask Wika. The important thing is that Wika is a contractor at KCIC. This means that all billing from the contractor must adhere to the Engineering-Procurement-Construction contract clause. Everything must be complied with the Good Corporate Governance,” he said.

Apart from discussing Whoosh, Deputy SOE Minister Kartika said the meeting with Jokowi also encompassed discussions on regular train services and Light Rail Transit (LRT) projects. He highlighted the positive performance of KCIC, citing a passenger volume of 24,000, while LRT ridership stands at 80,000. “We will continue to increase the number of trains,” he concluded.

DANIEL A. FAJRI

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