Luhut Says China Has No Objection to Whoosh Debt Payment Plan
Indonesia and China Move Closer on Whoosh Railway Debt Arrangement
Kabarsaji.com – Indonesia’s effort to settle the financing structure of the Jakarta–Bandung Whoosh High-Speed Railway has advanced after discussions in China produced no objection to the proposed debt repayment mechanism.
Luhut Binsar Pandjaitan, chair of Indonesia’s National Economic Council, raised the issue during meetings with China’s National Development and Reform Commission (NDRC) while visiting the country from September 15 to 18. The talks focused on putting a technical framework in place so that the railway’s debt obligations do not remain unresolved.
“We cannot just let this issue linger, as it will be to our detriment. There must be technical follow-ups,” Pandjaitan said after meeting NDRC Chair Zheng Shanjie.
The discussion is significant because Whoosh is one of Indonesia’s largest transport infrastructure projects and has become a prominent example of cooperation between Indonesian and Chinese entities. The service connects Jakarta with Bandung and has changed travel patterns for many passengers moving between the capital region and West Java.
Chinese Side Raises No Objection
Pandjaitan said the Chinese government did not object to the repayment plan being discussed. He added that Indonesia’s domestic decision-makers have been brought into the conversation, including President Prabowo Subianto, Coordinating Minister for Economic Affairs Airlangga Hartarto, and Finance Minister Suahasil Nazara.
His involvement in the negotiations reflects his long association with the railway. Pandjaitan oversaw the project’s development while serving as coordinating minister for maritime affairs and investment between 2016 and 2024, giving him detailed familiarity with the project’s financing and implementation issues.
“The President has given the green light; it is now just a matter of execution. The National Economic Council is helping to expedite the process by conveying it to Chinese officials. Given our strong relationship with China, it appears everything will proceed smoothly,” Pandjaitan said.
The next stage will require technical work by the parties involved. An agreement on a repayment structure would provide a clearer path for handling the railway’s obligations while allowing attention to remain on operations and longer-term transport planning.
Long-Term Installments Under Discussion
Previous indications from former Finance Minister Purbaya Yudhi Sadewa suggested that debt restructuring for Whoosh could be designed around annual payments of roughly Rp1 trillion. The tenor under consideration could extend as long as 80 years, a structure intended to make the yearly burden more manageable.
Such a long repayment period would spread the obligation over decades rather than concentrating it in the near term. The precise technical details, including the final payment schedule and responsibilities among the relevant institutions, remain central to the follow-up process described by Pandjaitan.
The government is also pursuing a larger Indonesian ownership position in PT Kereta Cepat Indonesia China (KCIC), the operating consortium behind the railway. Indonesia is seeking to take a 60 percent stake, while Beijing Yawan HSR Co. Ltd. would retain the remaining 40 percent.
The Ministry of Finance is carrying out due diligence and valuing the shares that are expected to be transferred. Rosan Roeslani, chief executive of Indonesia’s Danantara Sovereign Wealth Fund, has said the planned transfer of KCIC management to the Finance Ministry remains on track.
Extension to Surabaya Draws Public Interest
Debt discussions were not the only railway issue on Pandjaitan’s agenda in China. He also brought forward the prospect of extending the high-speed rail line beyond Bandung to Surabaya in East Java.
The existing Jakarta–Bandung route has stimulated interest in broader high-speed rail connectivity, particularly because it has offered a different way for commuters and travelers to move between Jakarta and West Java. Any expansion toward Surabaya would be a major continuation of that idea, linking the current corridor with another important urban center on Java.
Pandjaitan said President Prabowo is expected to appoint a coordinating minister to supervise the continuation of the project and maintain its continuity. Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono was mentioned as a possible appointee for that role.
During the China trip, Pandjaitan also attended the China Economic and Social Forum 2026 in Hangzhou, delivered a public lecture at Tsinghua University, and held bilateral meetings with senior Chinese officials, including Foreign Minister Wang Yi.
For Indonesia, the coming decisions will shape both the financial management of the existing Whoosh service and the direction of future rail development. The immediate priority is translating the political support and bilateral understanding into a workable debt arrangement. Once that process is complete, the government will have a firmer basis for deciding how to manage KCIC and whether the high-speed rail network should move farther east across Java.
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