Indonesian Finance Ministry to Take Over 60% Stake in Whoosh

Indonesia's Finance Ministry is set to assume majority ownership of the Jakarta-Bandung Whoosh high-speed railway operator, PT Kereta Cepat Indonesia China (KCIC). The ministry will acquire a 60% stake, currently held by the state-owned enterprise consortium PT Pilar Sinergi BUMN Indonesia (PSBI), with the transfer expected to be finalized by mid-September 2026. Finance Minister Purbaya Yudhi Sadewa confirmed the move, emphasizing that the government's share will be managed through one or more Special Mission Vehicles (SMVs) under the ministry, rather than directly impacting the state budget.

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The first issue we discussed was the Jakarta-Bandung High-Speed Railway. It will be transferred from Danantara to the Finance Ministry. We will accelerate the process, and it should be completed by around mid-September.

This ownership restructuring means the 60% stake will no longer be under the purview of state railway operator PT Kereta Api Indonesia (KAI) or other PSBI members like PT Wijaya Karya (WIKA), PT Jasa Marga, and PT Perkebunan Nusantara VIII (PTPN VIII). Instead, it will fall under the direct supervision of the Finance Minister. The government intends to cover KCIC's future operational costs and financial obligations using dividends and profits generated by the ministry's SMVs, thereby avoiding direct government expenditure.

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KCIC will be transferred to the Finance Ministry and managed under my supervision. We will use one of our fiscal SMVs to manage it. We have several SMVs, so it will not become a direct burden on the state budget.

The Chinese consortium, Beijing Yawan HSR Co. Ltd., will continue to hold the remaining 40% stake in KCIC, signaling ongoing commitment to the partnership. Minister Purbaya also indicated that the government is open to exploring the expansion of the high-speed railway network beyond its current route to Bandung, with potential extensions into East Java being considered.

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The stake will be under my authority, not KAI.

The Finance Ministry's move to take over KCIC's debt has been a significant financial consideration. The ministry is exploring which of its SMVs will be responsible for managing the stake, with discussions indicating that multiple entities may be appointed. This strategic shift aims to streamline management and financial oversight of the high-speed rail project, ensuring its long-term viability while maintaining international partnership.

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They are still involved. Sixty percent will belong to us, while the remaining 40 percent will still be held by the Chinese partner.