Indonesian Government to Take Over Whoosh High-Speed Rail Infrastructure

Potential State Budget Involvement

The Indonesian government is moving to resolve the financial issues surrounding the Jakarta-Bandung high-speed rail project, known as Whoosh. Finance Minister Purbaya Yudhi Sadewa revealed that the state budget (APBN) is likely to be used to take over the project's infrastructure ¹

. This includes paying off the construction debts, while the operational management, including the rolling stock, will be handled by PT Kereta Cepat Indonesia China (KCIC), the project's operator ¹

Source 1

https://finance.detik.com/infrastruktur/d-8213385/purbaya-ungkap-peluang-pemerintah-ambil-alih-infrastruktur-whoosh

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Shift in Government Stance

This development marks a shift in the government's stance on the project's financial management. Previously, Minister Purbaya had expressed reluctance to involve the state budget in resolving the project's financial issues ²

. However, following President Prabowo Subianto's directive to address the problem, Purbaya indicated that he would follow the President's lead. 'If it's up to me, I'd rather not pay. But there are policies from higher-ups, the President and others discussing this,' Purbaya explained during a press conference ²

Source 2

https://finance.detik.com/infrastruktur/d-8213404/apbn-jadi-turun-tangan-atasi-masalah-whoosh-purbaya-bilang-begini

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Project Background and Financial Challenges

The Whoosh high-speed rail project has faced significant financial challenges since its inception. As the first high-speed rail project in Southeast Asia, it has been under scrutiny for its financial management and operational viability. The project's financial issues have been a point of contention, with various stakeholders calling for a resolution to ensure its successful completion and operation.