Indonesia completes debt restructuring plan for China-funded high speed train

[JAKARTA] Indonesia has completed a plan to restructure the debt of the country’s high speed train company, chief operating officer of sovereign fund Danantara Indonesia Dony Oskaria said on Tuesday (Apr 7).

Construction of the US$7.3 billion China-backed, 142-kilometre high-speed railway began in 2016, and it was launched in 2023 by Indonesian President Joko Widodo. The bullet train is named “Whoosh”.

Indonesia said last year it had entered negotiations with China on the debt renegotiation, though Dony did not say whether China agreed with the plan announced on Tuesday.

The project to connect the capital Jakarta and Bandung in West Java faced problems, including land procurement issues, pandemic-related delays and ballooning costs.

China will still have shares in the project after the restructuring, which will be announced in more detail in the next two weeks, Dony added. REUTERS