Luhut Denies State Budget Issues For Fast Trains: Who Asks?

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan. (Photo: ANTARA)

JAKARTA - Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan dismissed the assumption that the Fast Train project bettersh requested funding from the state budget (APBN).

According to Luhut, the polemic that arose regarding project financing should not have happened. Because, he emphasized that the problem was only related to restructuring.

"It's like we're fussing about God willing. What's the problem? Isn't it just restructuring? Who asked for the state budget? No one has ever asked for the state budget," he said when met in the South Jakarta area, Thursday, October 16.

Regarding the restructuring, Luhut said, it had been discussed with the Chinese government. He also admitted that he had handled the project from the start and that there were problems in the construction process.

Then, continued Luhut, his party is trying to improve. The project has also undergone an audit by the Financial and Development Supervisory Agency (BPKP).

Finally, he said, the Chinese side agreed to restructure the project's debt.

"Because I was the one who worked on it from the start, because I accepted that the stuff was rotten, then we tried to fix it, we audited it, BPKP, then we negotiated with China, and China wanted to do it," said Luhut.

Currently, said Luhut, the restructuring process is still waiting for the presidential decree (Ceppres) to be signed by President Prabowo Subianto so that the official team can immediately negotiate.

Furthermore, Luhut said that the change of government some time ago made the formation of the team too late.

"Now we need to wait for the presidential decree, so that the team can immediately negotiate, and while the China is ready, there is no problem," he said.

Previously, Minister of Finance Purbaya Yudhi Sadives said the government would not bear part of the debt from the Jakarta Fast Train Project "Bandung" which was run by PT Kereta Cepat Indonesia "China (KCIC).

According to Purbaya, the responsibility for repaying debt should be under the Anagata Nusantara Resources Investment Management Agency (BPI Danantara), which oversees a number of SOEs, including PT Kereta Api Indonesia (Persero) as KCIC's shareholder.

"What is clear is that I have not been contacted regarding this issue. But KCIC is now under the Danantara, right? If it is under Danantara, they should already have their own management, their own dividends," he said in the Media Gathering of the 2026 State Budget, Friday, October 10.

Dia menjelaskan, Danantara saat ini mengelola dividen sebesar sekitar Rp80 triliun per tahun.

Dengan dana sebesar itu, menurutnya, sumber daya dari Sovereign Wealth Fund (SWF) Indonesia seharusnya cukup untuk menyelesaikan masalah pembiayaan utang proyek Kereta Cepat, tanpa harus menggunakan dana dari APBN.

“Kalau di bawah Danantara, mereka sudah punya manajemen sendiri, sudah punya dividen sendiri, yang rata-rata setahun bisa mencapai Rp80 triliun atau lebih. Harusnya mereka bisa mengelola utang Proyek Kereta Cepat Jakarta–Bandung dari situ,” tegasnya.

He explained that Danantara currently manages dividends of around Rp. 80 trillion per year.

With such a large fund, according to him, the resources of Indonesia's Sovereign Wealth Fund (SWF) should be sufficient to solve the debt financing problem for the high-speed rail project, without having to use funds from the state budget.

"If they are under Danantara, they already have their own management, already have their own dividends, which on average a year can reach Rp80 trillion or more. They should be able to manage the debt of the Jakarta Fast Train Project "Bandung from there," he said.