Now Reading: Indonesia to take 60% control of China-funded Whoosh rail operator
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Indonesia to take 60% control of China-funded Whoosh rail operator
Indonesia's government will take a controlling 60% stake in PT KCIC, the operator of the $7.3 billion Whoosh high-speed rail line between Jakarta and Bandung, with an agency under Finance Minister Purbaya…
Indonesia's government will take a controlling 60% stake in PT KCIC, the operator of the $7.3 billion Whoosh high-speed rail line between Jakarta and Bandung, with an agency under Finance Minister Purbaya Yudhi Sadewa's ministry acquiring the holding while Chinese state firms keep the remaining 40%. Officials said the agency taking on the stake would also repay the project's outstanding loan without drawing on the state budget, though neither the size of the stake nor the loan's transfer terms was disclosed. Danantara chief operating officer Dony Oskaria said the transaction is due to close by mid-September. The 142-kilometre line has been dogged since construction began by land acquisition disputes, pandemic-era delays and rising costs.
Indian Opinion Analysis
A majority government stake would give Indonesia more direct say over a railway that has run over budget and behind schedule, though neither the cost of the stake nor the workings of the loan repayment plan has been made public. Framing the arrangement as debt already resolved goes beyond what officials have confirmed, since no figures or transfer terms were released. The transaction is stated to close in mid-September, and the stake's value and the loan terms would become checkable if they are published then.
Source: IndiaTimes
This brief was synthesised by AI from the source linked above.
