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View all search resultsFinance Ministry's Whoosh takeover plan raises technical, efficiency risks
In this year’s first half alone, the Indonesian SOE consortium that operates the Whoosh high-speed railway incurred a loss of Rp 5.1 trillion ($282.5 million), widening from Rp 4.9 trillion logged in the entirety of last year.
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Passengers disembark from a Whoosh high-speed train on Oct. 17, 2025, at Padalarang Station in Bandung, West Java. (Antara/Rubby Jovan)
T
he government has provided assurances that the Finance Ministry's plan to take over the Indonesian consortium of PT Kereta Cepat Indonesia China (KCIC), the operator of the Whoosh high-speed railway, from state asset fund Danantara would not burden state coffers and had been well received by its Chinese counterpart.
Economists, however, warned that placing Whoosh under a financial institution with limited technical expertise could complicate oversight of safety and maintenance standards while doing little to address the railway's persistent cash flow problems.
Following a meeting with Danantara chief operating officer Dony Oskaria, Finance Minister Purbaya Yudhi Sadewa said at a media briefing on Wednesday that the acquisition, which would "probably be finished" by the middle of this month, would transfer Whoosh's operations and liabilities to the Finance Ministry. However, he stressed that the high-speed railway's debt would not be financed with state funds.
Coordinating Economy Minister Airlangga Hartarto told reporters on Thursday that the plan had been communicated with the Chinese counterpart and that they responded “well”.
KCIC is a joint venture that operates the Whoosh high-speed railway, with an Indonesian consortium holding 60 percent of the ownership stake while the rest is owned by Chinese consortium Beijing Yawan HSR Co. Ltd.
The Indonesian consortium, PT Pilar Sinergi BUMN Indonesia (PSBI), is entirely made up of state-owned enterprises (SOEs) with the largest share belonging to railway operator PT Kereta Api Indonesia (KAI).
All state-owned enterprises’ (SOEs) assets and businesses, including KAI and Whoosh, have been managed by Danantara since its establishment last year.
