WIKA Expects Financial Recovery from Government Whoosh Stake Transfer

PT Wijaya Karya (Persero) Tbk (WIKA) expects a financial recovery following the Indonesian government’s plan to take over the 60% stake in the Jakarta-Bandung High-Speed Railway, known as Whoosh, currently held by the PT Pilar Sinergi BUMN Indonesia (PSBI) consortium. This transition aims to resolve the negative financial impact the project has exerted on the consortium members’ balance sheets, according to sources.

Financial Relief for WIKA

WIKA’s Finance Director, Mulyadi, stated during a public expose on Thursday, October 1, 2026, that the company’s involvement in the Whoosh project has negatively impacted its equity and profit-and-loss statements due to the project’s current negative returns. By transferring the stake to the Ministry of Finance, WIKA anticipates a direct improvement in its financial performance by the end of 2026. Mulyadi noted that the company has been recording losses due to its participation in the project.

Shareholders Finalize Due Diligence for Stake Transfer

While the Indonesian side holds 60% of the project, the remaining 40% is owned by a Chinese consortium.

Vera Kirana, Director of Risk Management & Legal at WIKA, confirmed that the current shareholders are finalizing the due diligence process. The consortium is coordinating with Danantara, the Agency for State-Owned Enterprises (BP BUMN), and the Ministry of Finance to facilitate the transfer.

Minimizing Fiscal Impact

Whoosh’s services must continue, but the fiscal burden can be minimized, kata Juda saat ditemui di Bogor, Kamis (1/10/2026). Deputy Minister of Finance Juda Agung stated that the government is evaluating options to ensure Whoosh continues to operate while minimizing the burden on the state budget (APBN), according to sources. Previously, Minister of Finance Purbaya Yudhi Sadewa stated that annual debt payments for the project amounting to Rp 1 trillion are manageable, noting that the government has sufficient funds to meet these obligations.

The total investment for the project is estimated at US$7,26 billion to US$7,27 billion, which includes costs associated with project overruns. With an exchange rate assumption of Rp16,500 per US dollar, this total equates to approximately Rp119,79 triliun to Rp119,96 triliun. Approximately 75% of the financing was provided by the China Development Bank (CDB), with the remainder covered by shareholder equity, sources reported.

Why the Government Is Taking over Whoosh Stake

Why is the government taking over the 60% stake in Whoosh?
The government aims to stabilize the financial health of the state-owned companies involved in the PSBI consortium, such as WIKA, by removing the negative returns of the high-speed rail project from their individual balance sheets. This move also allows the government to manage the project’s fiscal obligations through an SMV under the Ministry of Finance.

What is the status of the transfer process?
As of early October 2026, the current shareholders are conducting due diligence and coordinating with the Ministry of Finance and relevant state agencies to finalize the transition. Government officials have indicated that while a specific completion target was previously discussed, technical assessments are ongoing to ensure the project remains sustainable.

Will the Whoosh service be affected by this change?
No, the government has emphasized that the primary goal is to ensure the high-speed rail service continues to operate normally. Both the Ministry of Finance and project stakeholders are prioritizing service continuity while working to minimize the overall impact on the national budget.

The project’s initial investment was calculated at approximately US$6,07 billion before cost overruns of about US$1,21 billion increased the total to its current valuation.