Bogor, West Java (ANTARA) - Indonesia's Finance Minister Purbaya Yudhi Sadewa stressed that the State Budget will not be used to pay the debt of the Jakarta–Bandung high-speed railway managed by PT Kereta Cepat Indonesia China (KCIC).
He said the project's financing should be handled by sovereign wealth fund Danantara Indonesia, the super holding of state-owned enterprises (SOEs).
PSBI, a subsidiary of state-owned railway operator PT Kereta Api Indonesia (KAI), holds a 60 percent stake in KCIC.
"This should be handled by Danantara, which receives around Rp80 trillion (US$4.8 billion) annually in SOE dividends," Sadewa said on Friday.
He reiterated that the government will not bear the project's financial burden.
Danantara Chief Operating Officer Dony Oskaria earlier said the fund has prepared two settlement options: taking over the infrastructure or injecting new capital.
"Will we add equity first or transfer the infrastructure, as in other railway projects? These are the two options," he said on October 9.
Oskaria said the high-speed railway, known as Whoosh, has benefited the public by cutting travel times, with daily ridership now reaching 30,000.
"However, we are also concerned about KAI's sustainability. Since KCIC is part of KAI, we are seeking the best solution," he said.
Investment and Downstreaming Minister Rosan Perkasa Roeslani said on Thursday that negotiations on the project's debt restructuring are ongoing with the government and Chinese partners to reach a more sustainable financing structure.
Roeslani, who also serves as Danantara's CEO, said the restructuring aims for long-term financial stability through comprehensive reforms to prevent similar risks in future projects.
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This news was published on Antaranews.com with a title: No state funds for high-speed rail debt: Indonesian govt
