Danantara Targets Whoosh Debt Negotiations to Be Completed by Q1 2026

Danantara Chief Operating Officer (COO) Dony Oskaria is targeting the completion of debt settlement negotiations for the Indonesia-China High-Speed Railway (KCIC), or Whoosh, project with China by the first quarter of 2026.

He said Danantara is currently in discussions with Coordinating Minister for Economic Affairs Airlangga Hartarto regarding the timing of a trip to China to conduct the negotiations.

“We’ll wait for the Coordinating Minister (to go to China), but there’s no need to worry. God willing, the first quarter will see the negotiations completed,” said Dony.

He confirmed that Danantara is also continuing to coordinate with the Ministry of Finance regarding the mechanism for settling Whoosh’s debt, which stands at around Rp 1.2 trillion per year.

“It’s being discussed with the Ministry of Finance. But God willing,” he said.

He also cautioned against worrying about the Whoosh debt, assuring that the settlement process with China would be carried out promptly.

“What is there to worry about? What’s the actual problem? It’s essentially already resolved. The process will be completed,” said Dony.

He pointed out that the Whoosh high-speed railway project connecting Jakarta and Bandung has delivered sustained economic impact for the Indonesian people.

“It delivers economic impact. Operationally, they are able to sustain themselves. The problem was simply that our equity investment was too small, which caused the debt to balloon during construction,” he said.

Previously, Finance Minister Purbaya Yudhi Sadewa admitted he had not yet discussed the Whoosh project debt settlement further with the Presidential Palace.

“Later—I haven’t been called in for that matter yet,” said Purbaya.

According to him, the latest discussion on KCIC’s financial restructuring still uses a 50:50 scheme, meaning not all of the debt burden would be borne by the state budget. However, Purbaya said he would verify the continuation of the debt settlement plan for the Jakarta-Bandung High-Speed Railway project after receiving a call from the Palace.

“As far as I recall, it’s still 50:50. I haven’t been invited there yet,” he said.

Purbaya is optimistic that Indonesia’s economy will enter a phase of healthy expansion over the next seven to ten years, or at least through 2033.