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

The Chinese Ambassador to Indonesia, Wang Lutong, has revealed that debt negotiations with Indonesian authorities regarding the High-Speed Railway are proceeding very well. He continues to maintain close contact with relevant parties and ministries in Indonesia, stating that everything is progressing smoothly.

When asked about the specific agreements reached with the Indonesian government, Wang stated that he could not disclose the details of the agreement, but reaffirmed that it was implemented very successfully. “It is not possible to reveal any details regarding the discussions. However, everything is on the right track,” Wang told reporters during the China-Indonesia Think-Tank and Media Forum 2026 in Jakarta on Wednesday (24/06/2026).

The Chinese Ambassador also clarified that regarding the KCIC (Kereta Cepat Indonesia China) project, the Chinese government does not lend money directly to Indonesia. Instead, the Chinese government provides loans to the China Development Bank, which then lends the funds for the construction of the Whoosh high-speed rail.

“It is not a debt [to Indonesia]. It is money that we lend to the development bank (China Development Bank), which then lends the money to Whoosh,” he said.

In 202<0xC2>1, the President Director of PT KCIC at the time, Dwiyana Slamet Riyadi, mentioned that the Jakarta-Bandung High-Speed Railway project was funded through a business-to-business (B2B) scheme, part of which originated from loans from the China Development Bank. It was explained that 75 per cent of the foreign capital for this project came from the China Development Bank, according to a KCIC press release.

In previous reports, Finance Minister Purbaya Sadewa confirmed that the restructuring process for the Whoosh high-speed rail project has been completed and will be announced shortly. He shared this with journalists after attending an event for PT SMI at Ayana Mid Plaza, Jakarta, on Wednesday (22/04/2026).

“It is done; it just needs to be announced,” Purbaya told the media, as reported on Thursday (25/06/2026).

Purbaya declined to provide further details regarding the results of the restructuring, including when asked about the future of PT Kereta Cepat Indonesia China (KCIC). “It will be announced later, after the announcement by Mr AHY. I do not think I have the right to announce it now,” he said when asked by reporters whether KCIC would fall under the Ministry of Finance.

The Finance Minister also recounted how cost overruns occurred during the construction phase in the past. He noted that the Chinese side had previously complained about a lack of progress, particularly regarding slow land acquisition. “China said that at that time, there was no progress. Only 4 kilometres of land had been cleared at that point. I am referring to the past. I then asked, who is handling the project? They said when they complained to the SOEs, they were bounced between the Ministry of Public Works and elsewhere. So, it was brought here and sorted out slightly at that time,” he explained.

However, Purbaya reaffirmed that large-scale projects, including the high-speed rail, will be closely monitored to ensure they are implemented effectively.