Purbaya: Negotiation on High-Speed Rail Debt Restructuring Completed
The negotiation process for restructuring the debt of the Jakarta-Bandung High-Speed Rail, or Whoosh, between Indonesia and China has been completed. “It’s done, just waiting to be announced,” said Finance Minister Purbaya Yudhi Sadewa at Ayana Midplaza, Jakarta, on Wednesday, 22 April 2026.
The State Treasurer has also met with the Chinese Finance Minister to convey that the negotiation results have been decided. Thus, the Chinese government need not worry that Indonesia will default on its responsibility to repay the debt.
Purbaya explained that the losses from Whoosh are felt by companies in both countries involved in the project investment. “We pay a certain percentage, they (China) pay a certain percentage, right? So both sides are somewhat suffering,” he stated.
Nevertheless, Purbaya declined to reveal the detailed mechanism of the high-speed rail debt restructuring. According to Purbaya, the official announcement will be delivered by Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY).
The debt restructuring negotiation for the high-speed rail project has been planned by the government and Danantara since last year. In November 2025, a technical precursor team was sent to open negotiation channels with China.
In early April, the Head of the State-Owned Enterprises Agency (BPSDM) and Chief Operating Officer (COO) of Danantara, Dony Oskaria, stated that the resolution process had reached the final stage after discussions with Purbaya. The resolution has entered the formal stage, such as document signing, which will also be publicly announced.
“All studies and so on have been completed. Now it’s just the formal process. There will be signing and such,” said Dony at the Presidential Palace Complex, Jakarta, on Tuesday, 7 April 2026, as quoted from Antara.
Since construction began in 2016, the high-speed rail project has incurred a total cost of US$7.2 billion, equivalent to Rp120 trillion (exchange rate of 16,707 per US dollar). This consists of an initial investment of US$6.02 billion and cost overruns of US$1.21 billion.
Seventy-five percent of the funding was obtained from a loan from the China Development Bank, and the remaining 25 percent from equity of PT Kereta Cepat Indonesia China (KCIC). The consortium of PT Pilar Sinergi BUMN Indonesia (PSBI) holds 60 percent of KCIC shares, while the remaining 40 percent is held by the Chinese consortium, Beijing Yawan HSR Co Ltd.