Jakarta. Indonesia is weighing two strategic options to resolve outstanding debt from its $7.2 billion Jakarta-Bandung high-speed rail project with China: injecting new capital into the operating consortium or acquiring full ownership of the company, a senior official said Thursday evening.

The Whoosh bullet train -- Southeast Asia’s first -- has been operational since late 2023 and is managed by Kereta Cepat Indonesia China (KCIC). The joint venture is majority-owned by Indonesian state enterprises grouped under Pilar Sinergi BUMN Indonesia (PSBI) and minority-owned by a Chinese consortium.

Dony Oskaria, Chief Operating Officer of Indonesia’s sovereign wealth fund Danantara, said the government is reviewing both options as part of a broader strategy to stabilize the project’s finances.

“We’re considering whether to increase equity so that KCIC can become self-sustaining,” Dony said during the Investor Daily Summit in Jakarta. “Alternatively, we could hand over the infrastructure to the government, similar to other state-owned railway assets.”

Danantara, which oversees all state-owned companies under President Prabowo Subianto’s administration, has presented the two proposals to the Coordinating Ministry for Infrastructure and the Transportation Ministry.

KCIC currently serves between 20,000 and 30,000 passengers daily, with room for growth as demand rises. However, ticket revenues have yet to offset the project’s high operating and financing costs.

Financial reports show KCIC incurred a Rp 1.6 trillion ($100 million) loss in the first half of 2025, with Kereta Api Indonesia (KAI) -- its largest shareholder -- absorbing Rp 951 billion. The figure marked an improvement from Rp 2.4 trillion in losses during the same period a year earlier.

Throughout 2024, PSBI’s total losses reached Rp 4.2 trillion, including Rp 2.23 trillion shouldered by KAI, while fellow state firms Wijaya Karya, Jasa Marga, and Perkebunan Nusantara VIII bore the remainder.

Launched in 2016, the Jakarta–Bandung high-speed rail has been financed largely through loans from the China Development Bank, with total costs ballooning far beyond initial estimates due to repeated budget overruns.

The Chinese consortium in KCIC comprises China Railway International Co. Ltd., China Railway Group Ltd., Sinohydro Corporation Ltd., CRRC Corp Ltd., and China Railway Signal and Communication Corp.