Indonesian Finance Minister Discusses High-Speed Rail Debt with Danantara CEO

Meeting Overview

Finance Minister Purbaya Yudhi Sadewa held a crucial meeting with Danantara CEO Rosan Roeslani at the Ministry of Finance in Jakarta to discuss the ongoing debt restructuring of the Jakarta-Bandung High-Speed Rail project, known as Whoosh. The primary agenda was to explore suitable solutions for the project's debt issues, which have been a significant concern for both the government and the project's stakeholders.

Debt Restructuring Discussions

During the meeting, Purbaya emphasized that the government is still in the process of determining the most appropriate scheme for resolving the Whoosh project's debt. He highlighted that technical teams from Danantara and the Ministry of Finance will engage in further discussions to finalize the details. The minister expressed optimism about reaching a viable solution, stating that while the broad outline is clear, the specifics are still being worked out.

Potential Trip to China

Regarding a planned trip to China to negotiate the debt, Purbaya indicated that the plans are not yet finalized. He noted that the decision to travel to China will depend on the clarity of the meeting's agenda and the progress made on the debt restructuring plan. The Indonesian government has been in talks with Chinese lenders to find a mutually acceptable solution to the debt issue, which has been a challenging aspect of the high-speed rail project.

Background and Significance

The Jakarta-Bandung High-Speed Rail project, operated by PT Kereta Cepat Indonesia China (KCIC), has faced significant financial challenges, including substantial debt that has raised concerns among stakeholders. The project's debt restructuring is critical not only for KCIC but also for maintaining Indonesia-China economic cooperation. The discussions between Purbaya and Rosan are a key step in addressing these challenges and finding a path forward for the project's financial sustainability.