Key facts
- Indonesia's sovereign wealth fund INA or a finance ministry agency will take control of the Whoosh high-speed railway operator next week.
- The railway project is valued at $7.3 billion and is funded by China.
- The stake transfer involves a 60% share, with Chinese firms retaining 40%.
- The handover is scheduled for September 15.
- The new controlling stakeholder will be responsible for repaying the project's outstanding loan.
- China has agreed to extend the loan's tenure to 80 years.
Indonesia is set to take control of the company operating its first high-speed railway, the $7.3 billion China-funded Whoosh line connecting Jakarta and Bandung. The handover, scheduled for September 15, will see Indonesia's sovereign wealth fund, INA, or a development financing arm under the Finance Ministry, acquire a 60% stake. Chinese firms will retain a 40% share.
The move comes as the Belt and Road Initiative project has grappled with ballooning costs and debt. Discussions with China to restructure the project's finances began in 2025, resulting in an agreement to extend the loan tenure to 80 years. The original $4.5 billion loan was provided by China Development Bank.
Finance Minister Purbaya Yudhi Sadewa stated that the new controlling stakeholder will be responsible for repaying the railway's outstanding loan. Authorities are currently deciding whether INA or Sarana Multi Infrastructure (SMI) will be the entity taking ownership of the stake. The current stakeholder is a consortium led by state railway firm Kereta Api Indonesia, though it remains unclear if they will be compensated for the transfer.
Following the ownership change, plans are in motion to extend the railway by approximately 700 kilometers eastward to Surabaya, Indonesia's second-largest city. The funding for this extension has not yet been disclosed.