Observer: Government Takeover of WIKA's Stake in PSBI Could Protect the Public

Jakarta - State-owned enterprise observer and Director of NEXT Indonesia Center, Herry Gunawan, has said that the takeover of PT Wijaya Karya’s (WIKA) shares in PT Pilar Sinergi BUMN Indonesia (PSBI) needs to be resolved comprehensively, including the return of its investment funds. WIKA has invested approximately Rp6 trillion and holds a stake of around 33.36% in PSBI, the controlling shareholder of PT Kereta Cepat Indonesia China (KCIC), which is working on the Whoosh project.

Regarding the takeover mechanism, it should be conducted through a business-to-business arrangement. WIKA is a public company, so it must be accountable for its corporate actions to stakeholders, including retail investors and regulators, Herry said on Thursday (20/8/2026).

Herry stressed that WIKA needs to receive a refund of its investment from the share takeover in accordance with the agreed price and the number of shares the company holds in PSBI.

According to him, the mechanism for the government’s takeover of WIKA’s shares in PSBI must be carried out through a divestment scheme (share sale and purchase), not through a grant. He added that the settlement must be comprehensive, including the process of returning the investment funds of around Rp6 trillion that the company has deposited into PSBI.

This scheme needs to be the preferred option, because state-owned enterprises like WIKA have already poured funds into PSBI, and everything must be accounted for to the public, both in terms of transparency and accountability. Not through a grant, Herry said.

Herry explained that the takeover mechanism through a divestment scheme can maintain the trust of stakeholders, including investors, in the government and state-owned enterprises.

The business mechanism through divestment or transfer of ownership through a business mechanism is important for the government to maintain, in order to preserve investor confidence, Herry said.

If the share takeover is not carried out in a business-to-business manner, Herry warned of the potential impact on the company’s sustainability due to the high level of debt used to finance the project, as well as the emergence of negative perceptions from investors towards other state-owned enterprises listed on the capital market.

If the share transfer is not done through a business mechanism, meaning there is a share or ownership sale and purchase transaction, this could affect the business sustainability of other state-owned enterprises that have become publicly listed companies, Herry said.

Previously, WIKA received a government assignment to invest approximately Rp6 trillion in PSBI, which holds 60% of PT Kereta Cepat Indonesia China (KCIC). The investment funds were obtained by WIKA through bank loans, sukuk, and bonds.

This condition has resulted in a high debt burden that the company must bear each year. In particular, the protracted settlement of sukuk and bond debt obligations has had a direct impact on the public and institutions holding securities, including public investment fund collectors such as pension fund institutions (Dapen).

If the takeover of WIKA’s shares in PSBI is accompanied by the return of the Rp6 trillion investment, it is projected to potentially save WIKA from potential losses of around Rp2 trillion per year arising from loan interest expenses and the obligation to absorb PT PSBI’s losses. In addition, WIKA’s obligations to creditors, including the public and pensioners through Dapen, can be fulfilled, so that WIKA’s shares, which have been suspended by the Indonesia Stock Exchange for almost two years, can be traded again.

For information, the Whoosh project is being worked on by PT KCIC, whose shares are 60% owned by PSBI and 40% owned by Beijing Yawan HSR Co. Ltd.

Previously, Chief Operating Officer of Danantara Indonesia, Donny Oskaria, acknowledged that WIKA is currently in a concerning condition due to the debt burden from Whoosh for investment and construction cost overruns. However, the government will not allow the situation to drag on.

This is a burden for them (WIKA), but in the end we have to resolve it, we cannot just leave it, Dony said.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa said the Ministry of Finance will take over the 60% stake in PT KCIC, targeted for completion by mid-September 2026.

Purbaya explained that PT KCIC will be managed through a Special Mission Vehicle (SMV) unit under the Ministry of Finance, so it will not become a direct burden on the state budget (APBN).

It will be transferred to the Ministry of Finance, I will manage all of KCIC. But later we will use one of the state-owned enterprise arms, our Fiscal SMV, to manage it. We have many, there are SMVs and others. So it will not directly become the responsibility of the APBN, Purbaya said.