Indonesia federal government to take control of state company’s stake in distressed China-funded high-speed train
By ReutersLast Updated: Aug 06, 2026, 10:24:00 AM IST
Run-through
Indonesia’s federal government will get a bulk stake in the high-speed rail operator. This relocation intends to handle the task’s impressive loan commitments efficiently.
Indonesia to take control of operator of $ 7.3-billion China-funded high-speed train.(AI Generated )
Jakarta: Indonesia’s federal government will take control of a managing stake in the business running a $ 7.3 billion China-funded high-speed train, its financing minister and a senior authorities with sovereign wealth fund Danantara stated.
Financing Minister Purbaya Yudhi Sadewa stated at a joint interview with Danantara on Wednesday that he will designate a firm under his ministry to take control of a 60%stake in PT KCIC, the business that runs the bullet train. The worth of the stake was not revealed.
Commercially called “Whoosh”the 142-kilometre (88-mile) train links Jakarta to Bandung, a city southeast of the Indonesian capital.
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The selected firm will be accountable for paying back the job’s exceptional loan, however will not utilize the state spending plan, Purbaya stated.
The deal will be finished at the most recent by mid-September, stated Dony Oskaria, primary running officer of Danantara.
In April, Dony stated Indonesia had actually finished financial obligation settlements with China for the job, however did not supply information.
The task has actually been stuck in issues, consisting of land procurement problems, pandemic-related hold-ups and ballooning expenses.
The 60% stake in KCIC is presently held by a consortium of Indonesian state business, led by state train company PT Kereta Api Indonesia, with building and construction company PT Wijaya Karya holding a considerable share.
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Chinese state companies will continue to hold a 40% stake in the task.
Danantara manages all Indonesian state companies.
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