Indonesia’s Minister of Finance, Purbaya Yudhi Sadewa, has declared his readiness to travel to China should the government finalize a decision to utilize the State Budget (APBN) for the debt repayment of the flagship Jakarta-Bandung High-Speed Rail project, commonly known as Whoosh. This statement underscores the critical stage of negotiations surrounding the project’s complex financial obligations.
As of now, Minister Purbaya confirmed he has not received a final decision regarding the debt payment scheme. While acknowledging the potential for APBN utilization, he has yet to give an explicit green light. “We need to understand the conditions from China, what their requirements are. If I am the one making the payment, I will go to China personally,” Purbaya told reporters at Wisma Danantara on Friday (13/2). He added, “But I don’t know yet. I will double-check again.”
Minister Purbaya revealed his past involvement in initial discussions concerning the high-speed rail debt, indicating his familiarity with the complexities of the situation. He emphasized that he is closely monitoring the ongoing developments in negotiations with the Chinese parties. “I was involved in the previous stages,” Purbaya stated, “but there are always new developments, and I’m not sure if a final agreement has been reached yet. I will certainly be informed once it is.”
Despite his involvement, Purbaya clarified that no specific discussions on the Whoosh debt scheme took place during the recent Danantara meeting. He reiterated his position, stating, “There were no discussions earlier. I will await the latest information from Mr. Rosan (CEO of Danantara). However, fundamentally, once the President makes a decision, I will execute it.” He further assured, “I will ensure everything runs smoothly. But for now, I haven’t received any information from Mr. Rosan, so I will wait.”
These remarks from the Finance Minister come amidst strong signals from the Presidential Palace indicating that discussions regarding the Whoosh debt repayment scheme have entered their finalization stage. Earlier, the State Secretary had confirmed that the technical negotiations for this crucial financial arrangement are currently being spearheaded by Rosan Roeslani, the CEO of Danantara.
The Whoosh High-Speed Rail project represents a substantial investment, valued at approximately USD 7.2 billion. This figure includes a significant cost overrun of USD 1.21 billion, highlighting the financial challenges faced by the ambitious infrastructure initiative. The majority of the project’s financing, around 75 percent, is sourced from a loan provided by the China Development Bank (CDB), with the remaining portion covered by capital injections from the consortium involved.
Previously, President Prabowo Subianto affirmed the government’s commitment to take responsibility for the project’s continuation, which includes an estimated annual debt installment obligation of approximately Rp 1.2 trillion. Responding to these figures, Minister Purbaya assured that the nation’s fiscal space remains adequate to manage such payments without exceeding the permissible deficit limits. He explained, “Our APBN is sufficient for this purpose; we can certainly accommodate it without breaching the 3 percent deficit cap, or we can implement savings in other areas by cutting back on less efficient or suboptimal projects and programs.”
Summary
Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, is prepared to travel to China if the government finalizes a decision to use the State Budget (APBN) for the Jakarta-Bandung High-Speed Rail (Whoosh) debt repayment. He confirmed that he has not yet received a final decision on the payment scheme but is closely monitoring ongoing negotiations with Chinese parties. Purbaya emphasized he would execute the President’s decision once made, awaiting the latest information from Rosan Roeslani, CEO of Danantara.
The Whoosh project, valued at USD 7.2 billion with a USD 1.21 billion cost overrun, is largely financed by a loan from the China Development Bank. President Prabowo Subianto has affirmed the government’s commitment, including an estimated annual debt installment of Rp 1.2 trillion. Minister Purbaya assured that the APBN has sufficient fiscal space to manage these payments without exceeding permissible deficit limits.