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Indonesian⁣ Government to⁣ Subsidize Jakarta-Bandung High-Speed Rail Debt via PSO

Jakarta, Indonesia – ⁤ Danantara Investment Management Agency (BPI) CEO⁤ Rosan Perkasa Roeslani has indicated that‍ the⁤ Indonesian government ‍will contribute to ⁢the debt⁤ repayment of the Jakarta-Bandung High-Speed ⁢Rail (KCJB), also known as Whoosh, through the Public Service Obligation (PSO)⁢ scheme.

The PSO scheme involves ‍government support for public services deemed essential. Rosan Perkasa Roeslani revealed this plan following⁢ a limited meeting with president Prabowo Subianto at the Presidential Palace in Jakarta.

“In the⁢ future regarding Whoosh, there will indeed be a ⁣portion⁤ of ‍the Public Service Obligation ⁣that will be⁣ borne by the⁢ government,” Rosan stated.

Beyond the government’s contribution, the ⁣consortium managing Whoosh – the⁢ Indonesia China Fast⁤ Train – will also participate in covering operational costs. ⁤Rosan⁤ did not elaborate on the specific role⁢ of Danantara Investment⁢ Management ⁤Agency,but emphasized that the debt burden will be shared.

“there are also those where the facilities⁤ will be borne jointly.⁣ But the facilities and also the operations can be carried out by BUMN ⁢or other business⁣ entities,”‍ he⁤ explained.

Rosan underscored the government’s commitment to addressing the financial challenges of Whoosh, recognizing its ‍importance as a public transportation service.

“We are currently finalizing this, but we said earlier that the government will definitely be present in ⁤handling this polemic,” he added.

Financial Breakdown & Potential Implications

while the exact financial details remain undisclosed, the government’s involvement through⁢ the PSO scheme suggests a recognition of potential revenue shortfalls or⁤ higher-than-anticipated operating ⁣costs for the high-speed rail line. The move aims to ensure ⁣the continued ‍operation of Whoosh as⁣ a crucial transportation⁢ link between Jakarta and Bandung.