Jakarta. Indonesia’s sovereign wealth fund, Danantara, recently said that negotiations to restructure the burgeoning Chinese train debt were ongoing, but the talks so far had been limited to teleconferences.

Indonesia has been trying to assuage public concerns about the huge loans it has taken out to build the $7.3 billion high-speed rail linking Jakarta and West Java’s Bandung. Chinese debt had covered about 75% of the total price tag of the project, which incurred $1.2 billion in cost overrun.

The bullet train, also known as Whoosh, has been carrying passengers since October 2023. Last year, the government entered talks with Beijing about modifying the loan’s terms. Asked by the Jakarta Globe on the latest updates, Danantara Chief Executive Officer Rosan Roeslani said that the discussions remained “in progress”. 

“It’s still ongoing through Zoom or video call,” Rosan said in Jakarta over the weekend.

There is a possibility for an in-person session, although the investment tsar did not give an exact date for when this would take place. 

“Maybe, they [China] will need us to go there [Beijing] sooner or later if asked. But the talks via teleconference are underway,” he added. 

Chief Infrastructure Minister Agus Harimurti Yudhono not long ago unveiled plans for a national committee of different ministries to oversee matters related to the Jakarta-Bandung fast train. This includes a possible extension to the East Javan capital of Surabaya. The committee seeks to prevent any future financing problems.

“When it comes to constructing a high-speed train, we need to make sure of its funding. This way, there will be no problems related to the planning and execution. We will draw lessons from the Jakarta-Bandung high-speed train,” Agus told the press in January.

But "further internal coordination is necessary", according to Agus, in response to questions on how Indonesia plans to bankroll the Surabaya extension.

The Whoosh service is operated by Kereta Cepat Indonesia China (KCIC), a joint venture owned by consortia from both countries. Pilar Sinergi BUMN Indonesia (PSBI) — a consortium of Indonesian state firms — has a 60% ownership stake. The rest goes to the Chinese consortium, Beijing Yawan HSR. KAI finds itself encumbered by the debt as the rail operator is the majority shareholder in PSBI. KCIC’s shareholders chipped in with some capital to cover 25% of the Whoosh construction costs.

Last October, Beijing gave a highly anticipated comment on the debt, saying that the project's success goes beyond the financial figures. Chinese Foreign Ministry's spokesman Guo Jiakun said at the time that “one must also take into consideration its public benefit and comprehensive returns” when assessing a high-speed railway project. 

Whoosh reported that its annual ridership had totaled 6.2 million passengers by the end of 2025. The project has cemented former President Joko “Jokowi” Widodo’s legacy in the transportation sector. Danantara — whose portfolio includes KAI — has previously announced that it would take care of the train’s operational matters, thereby leaving the infrastructure obligations to the government.

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