The Minister of Finance recently confirmed that the Indonesian government will officially take over the operations of PT KCIC, the Indonesia-China joint venture operating the Whoosh Jakarta-Bandung High-Speed Railway. The matter is basically settled, with only formal legal and administrative procedures remaining. He told media at the Jakarta Presidential Palace complex that the takeover plan for KCIC is clear and definite, but due to the involvement of multiple parties, specific details are temporarily not for public disclosure and will be announced by relevant parties at an appropriate time. He emphasized that core takeover arrangements have been agreed upon, and only follow-up procedures need to be completed.
Meanwhile, the head of the Indonesian State-Owned Enterprise Asset Management Agency (BP BUMN), who also serves as Chief Operating Officer of Danantara, confirmed in a separate interview at the same location that the Ministry of Finance led by the Finance Minister will be the entity taking over KCIC.
He stated that the process is ongoing and is expected to be completed in the short term, with details still being sorted out one by one. Regarding the takeover plan, he revealed that there are still several options under consideration, and since nothing has been finalized, he refrained from disclosing more to avoid unnecessary public speculation. He estimates that the entire KCIC takeover process will be completed within 1 to 2 months. Regarding the equity and role arrangements of existing KCIC consortium members, including Indonesian state-owned construction company WIKA and Indonesian railway company KAI, he said the government will handle all matters together, striving for a one-time comprehensive resolution of all issues.
He explained that relevant parties will return to their core businesses. For example, WIKA will focus on engineering and construction, gradually exiting the high-speed rail operation segment where it lacks expertise. The government will systematically clarify the rights, responsibilities, and equity structures of all parties, achieving a comprehensive and thorough restructuring and takeover. This government takeover of the high-speed rail operating company is seen as an important measure by Indonesian authorities to sort out the project's debt, rationalize the business model, and ensure the project's sustained and stable operation. Previously, President Prabowo had clearly stated that the government would assume the debt related to the Whoosh high-speed rail, with funds already in place, laying the foundation for this takeover.
The Minister of Finance recently confirmed that the Indonesian government will officially take over the operations of PT KCIC, the Indonesia-China joint venture operating the Whoosh Jakarta-Bandung High-Speed Railway. The matter is basically settled, with only formal legal and administrative procedures remaining. He told media at the Jakarta Presidential Palace complex that the takeover plan for KCIC is clear and definite, but due to the involvement of multiple parties, specific details are temporarily not for public disclosure and will be announced by relevant parties at an appropriate time. He emphasized that core takeover arrangements have been agreed upon, and only follow-up procedures need to be completed.
Meanwhile, the head of the Indonesian State-Owned Enterprise Asset Management Agency (BP BUMN), who also serves as Chief Operating Officer of Danantara, confirmed in a separate interview at the same location that the Ministry of Finance led by the Finance Minister will be the entity taking over KCIC.
He stated that the process is ongoing and is expected to be completed in the short term, with details still being sorted out one by one. Regarding the takeover plan, he revealed that there are still several options under consideration, and since nothing has been finalized, he refrained from disclosing more to avoid unnecessary public speculation. He estimates that the entire KCIC takeover process will be completed within 1 to 2 months. Regarding the equity and role arrangements of existing KCIC consortium members, including Indonesian state-owned construction company WIKA and Indonesian railway company KAI, he said the government will handle all matters together, striving for a one-time comprehensive resolution of all issues.
He explained that relevant parties will return to their core businesses. For example, WIKA will focus on engineering and construction, gradually exiting the high-speed rail operation segment where it lacks expertise. The government will systematically clarify the rights, responsibilities, and equity structures of all parties, achieving a comprehensive and thorough restructuring and takeover. This government takeover of the high-speed rail operating company is seen as an important measure by Indonesian authorities to sort out the project's debt, rationalize the business model, and ensure the project's sustained and stable operation. Previously, President Prabowo had clearly stated that the government would assume the debt related to the Whoosh high-speed rail, with funds already in place, laying the foundation for this takeover.
