China says Whoosh debt restructuring talks with Indonesia remain on track
Friday, June 26 2026 - 05:31 PM WIB
Discussions between Indonesia and China on restructuring debt for the Jakarta Bandung high speed railway, commercially known as Whoosh, are progressing as planned, China's ambassador to Indonesia said on Wednesday as quoted by Tempo.
Chinese Ambassador Wang Lutong said both governments remain in close communication over the restructuring of loans used to finance the US$7.2 billion railway project, although details of the negotiations have yet to be disclosed.
"We are in close communication with key stakeholders and relevant ministries. Everything is progressing well," Wang told reporters after the China Indonesia Think Tank and Media Forum in Jakarta.
When asked whether the two sides had reached an agreement, Wang declined to comment on the outcome, saying only that discussions were continuing.
"It is still not possible to disclose the details while discussions are ongoing. What is certain is that everything is proceeding according to plan," he said.
Indonesia has been seeking to restructure debt associated with the high speed railway, which began commercial operations in 2023, following cost overruns that increased the project's total investment to about US$7.2 billion from an initial estimate of US$6.02 billion.
About 75% of the project's funding came from loans provided by China Development Bank, with the remaining 25% financed through equity contributions by PT Kereta Cepat Indonesia China (KCIC), the railway's operator.
KCIC is owned 60% by Indonesian consortium PT Pilar Sinergi BUMN Indonesia and 40% by China's Beijing Yawan HSR Co. Ltd.
Indonesia has said the restructuring process is nearing completion. Danantara Chief Operating Officer Dony Oskaria said in April that technical studies and assessments had been completed and that only formal procedures, including signing, remained.
Finance Minister Purbaya Yudhi Sadewa later said negotiations had effectively concluded and that the restructuring framework had been communicated to the Chinese government. He said both Indonesian and Chinese stakeholders would share the financial burden arising from the project's cost overruns, although he did not disclose further details.
Editing by Alexander Ginting