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View all search resultsDanantara to restructure ‘substantial debt’ of Whoosh
The government has reiterated its commitment to accelerate the extension of the Whoosh Jakarta-Bandung line to Surabaya, despite experts' warnings that the train’s heavy losses could make the expansion a risky move.
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China-backed high-speed railway connecting Jakarta and Bandung called “Whoosh“ is parked at Halim station in Jakarta, on Oct. 2, 2023. (Reuters/Willy Kurniawan)
S
tate asset fund Danantara plans to restructure the Whoosh Jakarta-Bandung high-speed railway (HSR) loan as part of its strategic programs this year, with several schemes set to be proposed to the government.
“We are looking into this high-speed train and will report on it soon. There are several solutions that we will discuss and present to the government to resolve the issues,” Danantara’s chief operating officer (COO) Dony Oskaria said on Wednesday, as quoted by Kompas.com.
In a working committee meeting on the same day with House of Representatives Commission VI, which oversees trade, industry and SOEs, Dony explained that the Whoosh loan restructuring program is one of 22 strategic projects Danantara plans to undertake for the rest of the year.
In addition, there are also plans to restructure businesses in the airline, steel manufacturing and insurance sectors.
Read also: Whoosh losses raise doubts over Surabaya extension
Inaugurated in October 2023, the Jakarta-Bandung line became Southeast Asia’s first HSR. The US$7.3 billion project left the state-owned enterprises (SOEs) involved saddled with $4.55 billion in debt taken out in 2017, plus an additional $560 million in loans to cover cost overruns in 2023.
Dony explained that restructuring the Whoosh loan was necessary to maintain the performance of the SOE consortium involved in the project, particularly state railway company PT Kereta Api Indonesia (KAI), which holds the majority stake in the Indonesian consortium operating Whoosh, PT Pilar Sinergi BUMN Indonesia (PSBI).
