Head of the State-Owned Enterprises Regulatory Agency (BP BUMN), Dony\nOskaria, has discussed the option for the Ministry of Finance to take\nover PT Kereta Cepat Indonesia-China (KCIC), the consortium managing the\nJakarta-Bandung (KCJB) or Whoosh project.<\/p>\n
This step is one of the options being studied to resolve the debt\nissues of the Whoosh project. Since it began in 2016, the high-speed\nrail project has incurred total costs of US$7.2 billion, equivalent to\nRp120 trillion at an exchange rate of Rp16,707 per US dollar. This\ncomprises an initial investment of US$6.02 billion and cost overruns of\nUS$1.21 billion.<\/p>\n
However, Dony Oskaria emphasised that this option is not yet final.\nThe government, according to the Chief Operating Officer (COO) of the\nDanantara Investment Management Agency, is still examining several\nresolution options.<\/p>\n
\u201cYes, the possibility (of KCIC being taken over by the Ministry of\nFinance), this is something we are\u2026 Insha\u2019Allah, hopefully it will be\nfinalised soon, we are considering them one by one. There are several\nschemes, of course, and I will update later,\u201d Dony stated at the\nPresidential Palace complex in Jakarta on Tuesday, 7 April 2026.<\/p>\n
In addition to the option of management by the Ministry of Finance,\nthe government is also preparing other alternatives to address the\nissues at KCIC. \u201cAll resolutions, whether option A or option B, but\nwithin one to two months, it will be settled,\u201d Dony said.<\/p>\n
Dony did not provide further details on the fate of the PT Pilar\nSinergi BUMN Indonesia (PSBI) consortium in KCIC, which consists of\nseveral state-owned companies such as PT Kereta Api Indonesia (KAI), PT\nWijaya Karya (WIKA), PT Jasa Marga, and PT Perkebunan Nusantara I.<\/p>\n
It is known that PT KCIC is a joint venture between Indonesia,\nthrough PT PSBI with a 60 per cent stake, and China, through Beijing\nYawan HSR Co.\u00a0Ltd.\u00a0with a 40 per cent stake.<\/p>\n
\u201cThat (consortium) we will settle altogether. We want it to be done\nonce and for all, completely,\u201d Dony said.<\/p>\n
Furthermore, Dony continued, the government plans to return\nstate-owned companies to their core business focus, so they are not\nburdened with projects outside their respective areas.<\/p>\n
\u201cWe will return them to their portions; for example, WIKA is not in\nthat field, we will focus on contracting. We will settle them one by\none,\u201d Dony stated.<\/p>\n
With this approach, Dony believes that losses like those experienced\nby WIKA due to involvement in the Whoosh project will not recur.<\/p>\n
\u201cSo they will no longer be involved in railways because it is not in\nline with their business, right? So the resolution is like that\u2026 one by\none. Surely everyone knows; for example, if WIKA is here, there is also\u2026\nrelated to railways with Bukit Asam and so on. We will settle and tidy\nthis up. We want everything we do to be truly complete,\u201d Dony\nexplained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/head-of-bp-bumn-discusses-option-for-ministry-of-finance-to-take-over-pt-kcic-1775602283", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }