{
    "success": true,
    "data": {
        "id": 1659927,
        "msgid": "investment-in-whoosh-high-speed-train-burdens-wikas-finances-by-rp-1-8-trillion-1775616740",
        "date": "2026-04-07 04:27:49",
        "title": "Investment in Whoosh High-Speed Train Burdens WIKA's Finances by Rp 1.8 Trillion",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Infrastructure",
        "summary": "PT Wijaya Karya (WIKA), a state-owned construction firm, is facing significant annual losses of around Rp 1.7 to 1.8 trillion due to its investment in the Indonesia-China High-Speed Rail (KCIC) project, known as Whoosh, which is severely impacting its financial performance. The company, holding a 33.36% stake in the project consortium, is seeking to divest its assets to alleviate the burden, but faces challenges due to presidential regulations and requires government approval. Meanwhile, WIKA is engaged in ongoing mediation for a Rp 5.02 trillion cost overrun claim against KCIC, with resolution expected by the end of 2026, highlighting the need for better alignment between national strategic projects and the financial health of state-owned enterprises.",
        "content": "<p>PT Wijaya Karya (Persero) Tbk (WIKA) has reported substantial losses\nstemming from its involvement in the Indonesia-China High-Speed Rail\n(KCIC) project, or Whoosh. The company has been booking average annual\nlosses of approximately Rp 1.7 trillion to Rp 1.8 trillion from this\ninvestment. This recurring annual financial burden poses a significant\nchallenge for WIKA in achieving optimal net profits. Furthermore, WIKA\u2019s\nPresident Director, Agung Budi Waskito, acknowledged that this situation\nis severely pressuring the company\u2019s financial performance. \u2018In 2025, if\nI\u2019m not mistaken, it booked a loss of Rp 1.7 trillion or Rp 1.8\ntrillion,\u2019 Agung stated in North Jakarta on Monday (6\/4\/2026).\nAdditionally, WIKA holds a 33.36% ownership stake in PT Pilar Sinergi\nBUMN Indonesia (PSBI), the consortium for the project. WIKA\u2019s management\nhas expressed a desire to divest its ownership in the high-speed rail\nproject assets to reduce the annual burden. However, the divestment\nprocess is acknowledged to be difficult because the company\u2019s\ninvolvement is stipulated in a Presidential Regulation. The company has\nrequested that the government or Danantara consider WIKA\u2019s position,\nwhich is fundamentally that of a contractor. Moreover, decisions\nregarding full asset divestment fall entirely within the policy domain\nof the central government. \u2018It\u2019s not easy for us to divest the\nhigh-speed rail assets,\u2019 Agung emphasised in his statement to the media.\nIn addition, WIKA remains focused on resolving a cost overrun claim\nworth Rp 5.02 trillion. The mediation process for this additional cost\nclaim is currently ongoing between WIKA and KCIC. Furthermore, both\nparties have agreed to postpone arbitration proceedings at the Singapore\nInternational Arbitration Centre (SIAC). The government targets that the\nmediation process for this cost dispute can be fully completed by the\nend of 2026. Moreover, the resolution of this claim is expected to\nprovide financial position certainty for the red-plate construction\nissuer. The operational sustainability of Whoosh remains a national\nstrategic priority despite the investment pressures on contractors.\nThus, synchronisation of policies between state assignments and the\nfinancial health of state-owned enterprises becomes key to future\nevaluations.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/investment-in-whoosh-high-speed-train-burdens-wikas-finances-by-rp-1-8-trillion-1775616740",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}