Purbaya Confirms Finance Ministry to Take Over Whoosh Debt and Management

Finance Minister Purbaya Yudhi Sadewa has confirmed that the Ministry of Finance will take over the process of completing the debt restructuring and management of the Jakarta-Bandung high-speed railway. This was conveyed by Purbaya after a meeting with Danantara Indonesia Chief Operating Officer Dony Oskaria at the Ministry of Finance office in Jakarta on Wednesday.

“This is being handed over from Danantara to the Ministry of Finance. The intention is to accelerate matters. Perhaps by mid-September it will be clear,” Purbaya said during a press conference in Jakarta on Wednesday.

Purbaya stated that the handover also places PT Kereta Cepat Indonesia China (KCIC) under the Ministry of Finance and it will no longer be under PT Kereta Api Indonesia (KAI). Purbaya guaranteed that the Ministry of Finance will not use the state budget to bear the financial burden of the mega-project.

“It is transferred to the Ministry of Finance, I will manage everything, KCIC that is. But later we will use one of our fiscal Special Mission Vehicles to manage it. We have many, there is SMI, there are others. So it does not directly become the responsibility of the state budget,” Purbaya said.

Purbaya explained that the Ministry of Finance will take over Indonesia’s 60 percent share ownership in KCIC held by PT Pilar Sinergi BUMN Indonesia (PSBI). He noted that the Chinese consortium still holds a 40 percent share ownership.

“China is still in it. We asked China and it seems they still want to continue this project and perhaps if asked, we will extend it towards East Java,” Purbaya said.