Legislators Back Finance Minister’s Firm Stance Against Using State Budget to Pay High-Speed Rail Debt
Key Takeaways
|
JAKARTA, Investortrust.id — Legislators have voiced support for Finance Minister Purbaya Yudhi Sadewa’s firm rejection of any proposal to use Indonesia’s state budget to pay the debt of PT Kereta Cepat Indonesia-China, the operator of the Jakarta-Bandung high-speed rail project known as Whoosh. The move comes amid ongoing discussions over the financial burden of the multibillion-dollar venture, which has struggled to meet profitability targets since operations began.
House of Representatives (DPR) member Anis Byarwati said on Thursday, Oct 16, 2025, that it would be inappropriate to burden the state budget (APBN) with the project’s debt obligations. “It is not right for the APBN to bear this cost. Doing so would only strain the government’s already limited fiscal capacity,” Anis said in a statement.
She underscored that state funds should be reserved for essential spending, especially under the new State-Owned Enterprises Law, Law No. 1 of 2025, which stipulates that dividends from state-owned enterprises are to be transferred to Danantara Indonesia—Indonesia’s new sovereign investment manager—instead of the APBN. “Therefore, Danantara must manage this issue and find a solution without placing any additional burden on the state budget,” she added.
The lawmaker, who sits on the House’s finance commission, criticized the Jakarta-Bandung high-speed rail (KCJB) project for its lack of alignment with Indonesia’s long-term transport master plan. “From the beginning, this project was not included in the National Railway Master Plan 2030 and was not approved by the transport minister at the time,” Anis said.
She pointed to official statistics showing that passenger numbers peak only during holidays, highlighting the mismatch between the project’s massive investment costs and limited ridership. “According to data from Statistics Indonesia (BPS), the line is busy only during holiday seasons, yet the investment cost is very high and the operating expenses are substantial,” she said.
Anis called the situation a crucial lesson for the current administration. “Every policy decision involving public interest must be carefully evaluated for both its benefits and potential drawbacks,” she said, noting that once-profitable state enterprises are now burdened with paying around Rp 2 trillion in annual installments for a project inherited from the previous administration.
Her comments followed a rare public exchange between Minister Purbaya and Danantara Indonesia CEO Rosan Perkasa Roeslani regarding the future of the Whoosh project’s debt management. Rosan said he was surprised by Purbaya’s statement, noting that Danantara had not yet held formal discussions with the Ministry of Finance on the matter.
“I’m actually confused because we are still evaluating internally. We haven’t spoken to anyone else, let alone the Ministry of Finance, about the restructuring scheme,” Rosan told reporters on Tuesday, Oct 14, 2025, after attending the Forbes Global CEO Conference at The St. Regis Jakarta.
Rosan, who also serves as Minister of Investment and Downstreaming, said Danantara was still reviewing possible options for the debt restructuring of PT KCIC’s financing with the China Development Bank (CDB). “We should first sit down together, evaluate all possible options, and then communicate the results to the public once everything is clear and structured,” he said.
Minister Purbaya, however, reiterated his stance that the Whoosh project’s debt should not “leak” into government finances. Speaking earlier on Oct 10, he made clear that the responsibility for debt repayment lies with Danantara, which now oversees KCIC as part of its portfolio.
“KCIC’s debt financed by the state budget? I haven’t been contacted about that,” Purbaya said during a virtual media briefing in Bogor. “KCIC is under Danantara’s management now, so the issue should be resolved at that level.”
According to him, Danantara receives an average of Rp 80 trillion to Rp 100 trillion annually in dividends from state-owned enterprises. With such resources, Purbaya said, the entity should be able to manage KCIC’s debt obligations independently. “They should handle it themselves. Don’t come back to us again,” he said.
After a follow-up meeting with Danantara executives, Purbaya reaffirmed that the financing burden was manageable. “They only need to pay about Rp 2 trillion in annual interest. With an expected profit of Rp 1.5 trillion, the effective shortfall is only around Rp 500 billion,” he said after the meeting at Danantara’s headquarters in Jakarta on Wednesday, Oct 15, 2025.
Purbaya emphasized that the establishment of Danantara was meant precisely to separate business risks from the state’s fiscal responsibility. “The whole point of Danantara is to ensure that business entities handle their own problems. It cannot be that when profits are good, they go to the private side, but when things go wrong, the government must step in,” he said.
The debate reflects a broader test for President Prabowo Subianto’s economic governance—balancing fiscal discipline with ongoing management of legacy megaprojects inherited from the previous administration. While the Jakarta-Bandung line was meant to symbolize Indonesia’s entry into high-speed rail technology, it has instead become a lesson in risk management, project alignment, and fiscal accountability.
President Prabowo himself has used the Whoosh train several times for official trips, signaling his support for operational continuity. However, his government has also stressed the need for commercial sustainability without burdening public finances.