Purbaya assures Whoosh debt settlement will not burden state budget

Finance Minister Purbaya Yudhi Sadewa has assured that the settlement of debt for the Jakarta-Bandung High-Speed Railway project, known as Whoosh, will not burden the State Budget. Although he has not detailed the financing scheme to be used, the minister stressed that the government will minimise the use of state budget funds to resolve the project’s debt obligations. “For Whoosh, even though the state budget is involved, we will minimise the use of state budget funds to pay for Whoosh, but it is managed by us,” Purbaya said after a hearing on debottlenecking complaints in Jakarta on Thursday. He has not yet disclosed the financing mechanism to be pursued, nor has he explained the source of funds to be used to settle the debt of PT Kereta Cepat Indonesia China. The minister hinted that the government will utilise various instruments outside the state budget, including through Special Mission Vehicles. “No, I have many Special Mission Vehicles,” he said. Regarding the possibility of using proceeds from Panda Bond issuances to finance the Whoosh debt, the state treasurer said that instrument is currently prioritised to cover the state budget deficit. “This is to cover our deficit. Whether we will use it in the future, we will see later,” Purbaya stated.