“The Indonesian government on Wednesday confirmed it will use the state budget to repay roughly $7 billion in debt owed to China for the Jakarta–Bandung high-speed rail project, bringing clarity to weeks of debate over how the obligation would be settled.”
“The decision ends uncertainty over whether the debt would be covered by Indonesia’s sovereign wealth fund Danantara, the national budget, or operational revenue from the rail service, known as Whoosh.”
“The project cost $7.27 billion to build, with around 75% financed through a loan from China Development Bank, carrying an annual interest rate of about 2%.”
“The railway was developed by a consortium of Indonesian and Chinese state-owned enterprises. With Indonesian SOEs now under Danantara’s oversight, the fund has assumed responsibility for managing the project’s outstanding liabilities.”