Government Is Urged To Delay Decision On Whoosh's Debt Amid Corruption Allegations

JAKARTA - The Director of the NEXT Indonesia Center, Herry Gunawan, reminded the government to refrain from rushing into a decision regarding the debt rescue scheme for the Jakarta-Bandung High-Speed ​​Rail (KCJB) project, or Whoosh.

Herry stated this because the project is still under investigation for alleged corruption by the Corruption Eradication Commission (KPK).

Therefore, Herry continued, the most appropriate step at this time is to wait until the legal process is complete to prevent any future decisions from creating new problems.

"In my opinion, the government should not make any decisions regarding Whoosh right now, especially since the project is currently undergoing legal proceedings, namely the KPK's investigation into alleged corruption. Wait until the project is clean and clear, then decide on the rescue model," Herry told VOI, reported on Thursday, November 13.

Herry also highlighted the government's plan to use a Public Service Obligation (PSO) scheme to support Whoosh's operations. According to him, this scheme is not suitable for immediate implementation because the Whoosh project is managed by PT Kereta Cepat Indonesia China (KCIC), which is not a state-owned enterprise (BUMN).

"The mechanism cannot involve the state budget directly intervening in Whoosh, because the project is managed by KCIC, which is not a state-owned enterprise. Therefore, if a state-owned enterprise directly intervenes using the PSO scheme for high-speed trains, it would be inappropriate from a state budget governance perspective. It would be the same as the government injecting capital directly into the private sector," he explained.

Herry acknowledged that providing PSO funds could help cover some operational costs, but it would not solve KCIC's financial problems completely.

"If the government uses PSO funds from the state budget for Whoosh operations, that would be one way to help Whoosh. But it wouldn't solve its debt problem," he said.

According to Herry, Whoosh's operational losses were also caused by passenger numbers that fell short of targets. Therefore, resolving the high-speed train project's financial woes must be comprehensive.

"Whoosh's financial problems are twofold: operational and debt. These two issues must be addressed simultaneously if it is to be healthy, including restructuring or transformation in the operational sector to increase revenue, not just from tickets," he concluded.