Jakarta. The involvement of sovereign wealth fund Danantara in restructuring the debt of the Jakarta–Bandung high-speed rail project (Whoosh) sends a strong positive signal to both domestic and international investors, according to Toto Pranoto, Associate Director of the State-Owned Enterprises (BUMN) Research Group at the University of Indonesia’s Faculty of Economics and Business.

Speaking during the Investor Daily Talk on Wednesday, Toto said the government’s decision to share roles with Danantara in resolving the project’s debt marks a major policy breakthrough. The government will take responsibility for the infrastructure portion, while state railway operator Kereta Api Indonesia (KAI), under Danantara, will focus solely on operations.

“With the government and Danantara working together on debt settlement, the project’s sustainability is more assured. This builds investor confidence that Indonesia is committed to maintaining its strategic national projects,” Toto said.

He said that the high-speed rail’s total cost reached US$7.27 billion (around Rp 117 trillion), and that debt restructuring is essential to make the project financially viable in the long term. The move follows a 2023 government guarantee issued by the Finance Ministry to cover the project’s cost overrun, shifting it from a purely business-to-business (B2B) arrangement to one involving state participation.

“Since 2023, the project has no longer been fully B2B. The government’s involvement through guarantees and now through restructuring is a positive step to make the settlement more workable,” Toto said.

Toto also welcomed the recent agreement between Indonesia and the China Development Bank (CDB) to extend the project’s loan tenor from 40 to 60 years, describing it as evidence that the government now views Whoosh as a long-term investment rather than a short-term commercial project.

“With a 60-year tenor, the government is signaling that this project is not just about quick profit but about building a sustainable national transport system,” he said.

He added that the restructuring would ease annual repayment burdens and give the project more breathing room to strengthen revenue streams and operational efficiency. Future profitability, he said, will depend not only on ticket sales but also on developing non-fare revenue sources such as property and commercial developments along the railway corridor.

“In Japan, operators like JR East earn significant revenue from real estate near their train stations. That model could be adopted here to ensure long-term sustainability,” Toto suggested.

He further emphasized the importance of expanding Whoosh’s route beyond Bandung to other cities across Java to increase ridership and economic impact.

“If Whoosh’s reach remains limited to Jakarta–Bandung, the passenger potential will remain modest. But if extended eastward, the economic benefits could be much greater,” he said.

Toto concluded that Danantara’s emergence as Indonesia’s Temasek-style superholding enhances the country’s credibility among global investors. “This restructuring sends a clear signal that Indonesia is serious about its infrastructure commitments,” he said.

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