State Secretary Prasetyo Hadi conveyed the directive on Thursday evening, saying that Prabowo called for a thorough review of all financial scenarios, including options to extend the loan period to ease the project’s financial burden.
The instruction was issued during a limited cabinet meeting on October 29 attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, and Danantara CEO Rosan Perkasa Roeslani.
"Mr. Airlangga, the Finance Minister, and the Danantara CEO were asked to recalculate the details, including the option of extending the loan period," Hadi said. "That is part of the best scheme being pursued by the government."
He added that the discussion did not only focus on the debt issue of the high-speed train, known as Whoosh, but also on broader efforts to improve Indonesia's transportation system.
"The government is working to improve all modes, including regular trains, buses, and ships," he said.
The Whoosh debt has drawn public attention, with total liabilities reaching around Rp116 trillion (US$7 billion), sparking concerns over financing sustainability and its potential impact on the state budget.
Finance Minister Sadewa has stressed that the government will not use the State Budget (APBN) to cover the project's debt, saying the financial obligations rest with state-owned companies involved in the project.
On October 23, Danantara CEO and State-Owned Enterprises Regulatory Agency Head Dony Oskaria said negotiations on the project's debt restructuring with China are still underway.
He noted that Danantara's negotiation team will soon depart for Beijing to discuss key aspects of the loan agreement, including term, interest rate, and currency matters.
The talks involve the Chinese government and partner companies within the PT Kereta Cepat Indonesia-China (KCIC) consortium, the Whoosh operator.
The restructuring is expected to produce a more favorable payment scheme while ensuring the project's sustainability without burdening Indonesia's fiscal capacity.
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Translator: Primayanti
Editor: Anton Santoso
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