High-Speed Rail Project Causes WIKA to Incur Rp1.8 Trillion Losses Annually, Danantara Prepares This Strategy

The strategic Jakarta-Bandung High-Speed Rail project has once again come under scrutiny after PT Wijaya Karya Tbk (WIKA) revealed massive losses that continue to burden its financial performance. The state-owned company has recorded losses of up to Rp1.7–1.8 trillion every year due to its involvement in the project. These losses stem from WIKA’s participation in the consortium of PT Kereta Cepat Indonesia China (KCIC), the operator of the Whoosh high-speed train. This recurring financial burden is now prompting the government to prepare major steps to pull WIKA out of the project. COO of BPI Danantara, Dony Oskaria, emphasised that going forward, WIKA will no longer be involved in the railway business because it is deemed not aligned with its core competencies as a contractor. “Yes, that’s one example. So, we’ve sorted out the old ones. They won’t be involved in railways anymore, because it’s not in line with their business,” Dony said at the Presidential Palace Complex, Central Jakarta, on Tuesday, 7 April 2026. Nevertheless, the divestment process cannot be done instantly. The government and Danantara are currently devising a gradual resolution scheme to ensure all issues are settled without creating new risks. “But the resolution is step by step, yes. We’re sorting everything out, tidying it up. We want everything we do to be thoroughly completed. We’ll see, resolving this stage also has to be complete,” Dony stated. Currently, WIKA is part of the consortium of PT Pilar Sinergi BUMN Indonesia (PSBI), along with other state-owned enterprises such as PT Kereta Api Indonesia, PT Jasa Marga, and PT Perkebunan Nusantara I, which collectively hold the majority stake in KCIC. WIKA’s President Director, Agung Budi Waskito, acknowledged that the annual losses have become a heavy burden for the company and are hindering efforts to achieve profits. “Our portion results in booking quite significant losses every year; last year, in 2025, if I’m not mistaken, Rp1.7 trillion or Rp1.8 trillion, booking losses almost that amount every year,” Agung said. WIKA itself has long wanted to divest its investment in the high-speed rail project. However, the company’s involvement in this project is governed by government policy, so the divestment process cannot be done unilaterally.