TEMPO.CO, Jakarta - There are more than 25 posts on Instagram [archive], Facebook, Threads, TikTok, and YouTube claiming that Indonesian President Prabowo Subianto will pay off the debt for the Jakarta-Bandung Whoosh high-speed rail within two months. This narrative has been circulating since April 11, 2026.
The repayment was claimed to be made through the Danantara Investment Management Agency to avoid burdening the State Budget (APBN). "Finally, the Whoosh Train debt will be paid off within two months by Danantara," the accounts wrote.
Is it true that Danantara paid off the debt for the Whoosh high-speed rail in two months without using the state budget?
FACT CHECK
Tempo verified the video through interviews with economic researchers and various credible sources. In fact, the two-month deadline was set aside for discussing Whoosh's debt restructuring, not repayment.
To date, the government has not made a final decision on whether debt repayment will be made using the state budget or through Danantara.
Inflated Cost of Whoosh High-Speed Rail
The initial cost of the Whoosh project was recorded at US$5.5 billion (Rp89.6 trillion), but then increased to US$7.27 billion (Rp118.4 trillion) due to cost overruns. The project, which is expected to begin operations in October 2023, is 60 percent owned by an Indonesian consortium and 40 percent owned by China.
To cover the cost overruns, President Joko Widodo (Jokowi) signed Presidential Decree No. 93 of 2021, which supports the high-speed rail project through State Capital Participation (PMN) and guarantees. The PMN then disbursed Rp7.3 trillion.
The PMN is channeled through PT KAI for Indonesia's ownership of PT Kereta Cepat Indonesia China (KCIC). A new loan from the China Development Bank covers the remaining 75 percent, amounting to US$5.415 billion (Rp81.2 trillion).
In addition to the principal loan amount, the annual interest rate on the debt is 2 percent, and the interest rate on cost overruns is 3.4 percent per year. PT Kereta Cepat Indonesia China (KCIC) must pay US$120.9 million per year in interest.
No final decision has been made regarding Whoosh's debt. On February 10, 2026, Minister of State Secretary Prasetyo Hadi—who is also President Prabowo's spokesperson—explained that the loan repayment to creditors would be made using state funds from the state budget.
According to Dony Oskaria, the head of the State-Owned Enterprises Regulatory Agency (BP BUMN), one strategy to pay off the debt is for the Ministry of Finance to take over PT KCIC.
Two Months to Discuss Debt Restructuring Whoosh
Teuku Riefky, a macroeconomics and financial markets researcher at the University of Indonesia’s Institute for Economic and Social Research (LPEM FEB UI), said Danantara needed two months to restructure Whoosh's debt. It remains unclear whether the state budget or Danantara will be responsible for repayment.
"So it's not the debt that's being paid off in two months," Riefky told Tempo on Thursday, April 16, 2026.
Muhammad Zulfikar Rakhmat, CELIOS' Director of Indonesia-China Studies, believes it's impossible to repay Whoosh's massive debt within two months. This timeframe refers to the government's plan to discuss a debt restructuring scheme.
"It's financially unrealistic to pay off Whoosh's debt in two months," Zulfikar told Tempo on Friday, April 17, 2026.
The expert's explanation aligns with a CNBC report from April 8, 2026. Dony Oskaria, Chief Operating Officer (COO) of Danantara and Head of the State-Owned Enterprises Regulatory Agency (BP BUMN), stated that the options for resolving Whoosh's financial problems are expected to be finalized within 1-2 months. The government will soon announce the results of the debt settlement discussions.
Criticism of Whoosh Debt Being Paid Through the State Budget
INDEF Executive Director Esther Sri Astuti concluded that using the state budget to pay the debt would be a financial burden, given that the government's current debt burden is Rp800 trillion. Additionally, the state budget must fund major programs, such as the Free Nutritious Meals (MBG) program and the Red and White Village Cooperative program.
"The government should allocate more of its budget to accelerate industrial downstreaming, particularly infrastructure," Esther said via messaging app on Thursday, April 16, 2026.
A macroeconomics researcher at the LPEM FEB UI, Teuku Riefky, suggested continuing to repay the Whoosh debt through a business-to-business scheme rather than involving the state budget. He argued that the Jakarta-Bandung high-speed rail's benefits are relatively limited.
CONCLUSION
Tempo's investigation found that Prabowo's claim that he had paid off the debt for the construction of the Whoosh high-speed rail through Danantara within two months is misleading.
The government has not yet announced its decision regarding the debt repayment scheme.
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