Indonesia Pushes Whoosh High-Speed Rail Extension to Surabaya Amid KCIC Debt Challenges
Reporter
October 13, 2025 | 03:32 pm
TEMPO.CO, Jakarta - Minister of State Secretary Prasetyo Hadi stated that the government is determined to continue the Whoosh high-speed train project all the way to Surabaya, even amid the huge debt burden faced by the operator, PT Kereta Cepat Indonesia China (KCIC).
Prasetyo noted that Whoosh has already become a vital transportation mode, significantly aiding the mobility of residents traveling between Jakarta and Bandung.
"And we actually want it to develop further, not only to Jakarta and Bandung but also perhaps to Surabaya," Prasetyo said in South Jakarta on Sunday night, October 12, 2025.
Prasetyo did not deny that the plan is hindered by the budget. He confirmed the government is actively seeking a solution so that KCIC’s debt burden does not require the use of state budget funds (APBN).
Finance Minister Rejects APBN Bailout
This position aligns with the recent stance taken by Finance Minister Purbaya Yudhi Sadewa, who emphasized that the government would not bear the debt of the Jakarta-Bandung High-Speed Train project using the state budget.
Purbaya made this clear in response to a proposal from Danantara to transfer the high-speed train infrastructure to the government.
He stated that the responsibility for the project lies entirely with Danantara as the holding company for state-owned enterprises.
"If it is made by Danantara, of course, they already have their own management and their own dividends, which on average can reach Rp80 trillion or more per year. They should manage it from there, not send it back to us," Purbaya asserted during a video conference at a media gathering in Bogor, West Java, on Friday, October 10, 2025.
According to Purbaya, following the restructuring of SOEs through the formation of Danantara, the dividends received from these state-owned enterprises no longer enter the state treasury as non-tax state revenue (PNBP). Therefore, he argued it's reasonable for the institution to bear the financing risks of the projects it manages.
"If it's good, don't give it to the government. If it's not good, split it between the private and the government. This is about separating the private from the government," he concluded.
Danantara's Debt Settlement Options
Previously, Danantara's Chief Operating Officer Dony Oskaria revealed that they are preparing two primary options to settle the high-speed train project debt.
"Whether we add equity or hand over the infrastructure, as with other railway industries whose infrastructure belongs to the government. These are the two options we are currently considering," Dony said after the Investor Daily event in Jakarta on Thursday, October 9, 2025.
Dony claimed that the KCIC project has already had a significant economic impact by reducing travel time and increasing community mobility, noting that the number of passengers continues to climb, reaching 30,000 people per day.
However, Dony stressed that the debt settlement must carefully consider the sustainability of state-owned railway operator PT Kereta Api Indonesia (KAI), which acts as the lead consortium. "On one side, this project is beneficial. But we also have to maintain the sustainability of KAI. Because KCIC is now part of KAI, we are looking for the best solution," he explained.
Nandito Putra contributed to the report
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