AHY on Whoosh Debt: Awaiting Prabowo’s Lead

Indonesia Seeks Path to Resolve $7.3 Billion Fast Train Debt,Future projects at Stake

Indonesia is grappling with a substantial $7.3 billion (IDR 116 trillion) debt burden associated with its high-speed railway project, known as the Whoosh, and is exploring options for repayment while simultaneously planning future rail expansion. The government is awaiting direction from President Prabowo Subianto regarding the debt, but is proactively developing enduring solutions to avoid hindering further infrastructure growth.

Coordinating Minister for Infrastructure and Territorial Affairs Agus Harimurti Yudhoyono (AHY) stated on Monday, October 20, 2025, that a key priority is ensuring the Whoosh debt does not impede plans for a new high-speed rail line connecting Jakarta to Surabaya. “We are still waiting for the President’s direction while continuing to develop the best and most sustainable options,” AHY explained. “This means we can later move on to discuss the development of the next fast train for Jakarta to surabaya. I feel like we all know each other better.”

Did you know? – The Whoosh, officially the Jakarta-bandung High-Speed Railway, began commercial operations in October 2023. It is Indonesia’s first high-speed railway, aiming to reduce travel time between the two major cities.

Discussions are underway to determine how state-owned enterprises (BUMN) and the Ministry of Finance can contribute to resolving the debt. AHY revealed that recent meetings have been held with Danantara, the Ministry of Transportation, and KAI to explore restructuring options for the Jakarta-bandung high-speed rail line.

Though, securing financial support from the national budget has met resistance. Minister of Finance Purbaya Yudhi Sadewa has firmly stated that state funds will not be used to cover the Whoosh debt. “The KCIC project debt is not the government’s responsibility, but is entirely the buisness of the BUMN involved in it,” Purbaya asserted during a virtual meeting on October 10, 2026.

Pro tip: – Restructuring debt often involves extending repayment terms or negotiating lower interest rates. These strategies can ease immediate financial pressure but may increase the overall cost of borrowing.

Purbaya emphasized that Danantara, a newly formed BUMN superholding, possesses substantial financial resources through annual dividends – estimated at around IDR 80 trillion – and should utilize these funds to address the debt. “If Danantara has been created, they already have their own management, they already have their own dividends which on average a year can be IDR 80 trillion or more, they should manage from there. Don’t come to us (Ministry of Finance) again,” he said.

The situation highlights the complexities of financing large-scale infrastructure projects and the delicate balance between national development goals and fiscal responsibility. While the precise options for debt resolution remain under evaluation,the Indonesian government is committed to finding a sustainable path forward that allows for continued investment in critical transportation infrastructure.

Reader question: – Do you think large infrastructure projects should rely more on private funding, or is government involvement essential for national development? Share your thoughts!

Why, Who, What, and How did it end?

Why: Indonesia is facing a $7.3 billion debt related to the Whoosh high-speed railway project. The government wants to resolve this debt to avoid hindering plans for a new high-speed rail line connecting Jakarta to Surabaya.

Who: Key players include Coordinating minister for Infrastructure and Territorial Affairs Agus Harimurti Yudhoyono (AHY), Minister of Finance Purbaya Yudhi Sadewa, state-owned enterprises (BUMN) like danantara and KAI, and President Prabowo Subianto (who is expected to provide direction).

What: The core issue is the $7.3 billion debt accumulated during the construction of the Jakarta-Bandung high-