China's Ambassador Says High-Speed Rail Debt Negotiations with Indonesia Running Smoothly

China’s Ambassador to Indonesia, Wang Lutong, has revealed that debt negotiations with Indonesian parties regarding the High-Speed Railway are proceeding very well. He continues to maintain close contact with relevant parties and ministries in Indonesia and claims everything is on track. When asked about the agreement reached with the Indonesian government, Wang said he could not disclose the details of the deal but reiterated that it is being implemented very smoothly. “It is impossible to reveal any details about the discussions. But everything is on the right track,” Wang told journalists on the sidelines of the China-Indonesia Think-Tank and Media Forum 2026 in Jakarta on Wednesday (24/6/2026). The Chinese Ambassador also stated that regarding KCIC, the Chinese government did not lend money directly to Indonesia; instead, the Chinese government provided a loan to the China Development Bank to be lent for the construction of the Whoosh high-speed train. “It is not a debt. It is money that we lent to the development bank (China Development Bank) which lent money to Whoosh,” he said. Back in 2021, the then-President Director of PT KCIC, Dwiyana Slamet Riyadi, mentioned that the Jakarta-Bandung High-Speed Railway project was funded through a business-to-business (B2B) scheme, one source of which was a loan from the China Development Bank. “It was explained that in this project, the foreign capital loan came from the China Development Bank amounting to 75 percent,” according to a KCIC press release. In previous reports, Finance Minister Purbaya Sadewa confirmed that the restructuring process for the Whoosh high-speed train project has been completed and will be announced soon. He conveyed this to journalists after attending a PT SMI event at Ayana Mid Plaza, Jakarta, on Wednesday (22/4/2026). “It’s done, it’s finished, just waiting to be announced,” Purbaya told the media. Purbaya was also reluctant to explain the results of the restructuring in more detail, including when asked by journalists about the fate of PT Kereta Cepat Indonesia China (KCIC). “Later, after it is announced, after Mr AHY announces it. I think I don’t have the right to announce it now,” he said when asked whether KCIC would fall under the Ministry of Finance. The Finance Minister also recounted that during the construction period, there were cost overruns in the past. He noted that the Chinese side even complained about this, as they felt there was no progress, particularly regarding slow land acquisition. “China said, back then—now it’s been resolved—but previously there was no progress, they said. For two years, only 4 kilometres of land had been acquired at that time. I’m talking about the old days. Then I asked, who is handling the project programme? There wasn’t anyone, they said if we complained to the SOEs, we were ping-ponged to Public Works, ping-ponged again elsewhere. So it was pulled here and sorted out a bit at that time,” he explained. However, Purbaya reiterated that major projects, including the high-speed train, will be strictly supervised so they can be implemented properly.