APBN: Why It’s Overlooked and How to Leverage It
- Recent discussions surrounding the Jakarta-Bandung Fast Train (Whoosh) debt have sparked concerns, but Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan assures the public that the...
- Luhut Binsar Pandjaitan expressed surprise at the recent "chaos" regarding Whoosh debt financing.
- The restructuring process is underway following coordination with Chinese authorities, who have indicated their willingness to participate. A slight delay occurred due to the recent change in government,but...
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Whoosh Fast Train Debt restructuring: no APBN Involvement, Says luhut
Table of Contents
Recent discussions surrounding the Jakarta-Bandung Fast Train (Whoosh) debt have sparked concerns, but Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan assures the public that the settlement will not require state budget (APBN) funds. The project is undergoing a restructuring process with the agreement of Chinese lenders.
What Happened: Debt Restructuring, Not Bailout
Luhut Binsar Pandjaitan expressed surprise at the recent “chaos” regarding Whoosh debt financing. He clarified that the situation involves a restructuring of existing debt, not a request for APBN funds. His statement came during an event commemorating the first year of the Prabowo-Gibran administration on October 16, 2025.
The restructuring process is underway following coordination with Chinese authorities, who have indicated their willingness to participate. A slight delay occurred due to the recent change in government,but the process is now awaiting a Presidential Decree (Keppres) for finalization.
Why It Matters: Avoiding State Budget Strain
The assurance that the Whoosh debt will not be settled using the APBN is significant.utilizing state funds could divert resources from other critical national priorities. Restructuring the debt allows for a more sustainable financial solution without burdening taxpayers.
The project’s History & Initial Involvement
luhut Binsar Pandjaitan played a key role in the initial realization of the Whoosh project during the administration of President Joko Widodo. He directly coordinated with Chinese counterparts to facilitate the project’s growth.
The project faced initial challenges, including cost overruns and delays. The current restructuring aims to address these issues and ensure the long-term viability of the fast train.
China’s Role and Agreement
China has expressed willingness to participate in the debt restructuring process. This agreement followed audits conducted by the Indonesian Supreme Audit Agency (BPKP) and negotiations with Chinese authorities.
The delay in finalizing the restructuring was attributed to the transition of government in Indonesia. Now, with the new administration in place, the process is moving forward.
Timeline of Events
| Date | event |
|---|---|
| Prior to Oct 2024 | Whoosh project initiated under President Joko Widodo’s administration. |
| Oct 16, 2025 | Luhut Binsar Pandjaitan clarifies that whoosh debt restructuring will not use APBN funds. |
| Ongoing | Debt restructuring negotiations with Chinese lenders. |
| Pending | Issuance of Presidential Decree (Keppres) to finalize restructuring. |