AmCham Update Vol. 7 #098

Whoosh Debt Plan on Hold, Suahasil Expected to be Steady Hand as Finance Boss, Spatial Planning Ministry caught up in Bribery Probe, Gov’t Identifies Sites that are High-Risk for Children, Fitch Holds INA Rating Steady

Sep 18, 2026

Whoosh Debt Restructuring Uncertain after Purbaya Sacking

The government’s plan to restructure the heavy financing obligations for the Whoosh high-speed railway is now uncertain following the dismissal of former Finance Minister Purbaya Yudhi Sadewa on Sep 14.

The initial plan announced by Purbaya involved transferring the Indonesian consortium’s 60 percent stake in Kereta Cepat Indonesia China (KCIC), which is ultimately under Danantara, to a government-managed entity under the Finance Ministry as part of a broader restructuring effort.

Following the appointment of Suahasil Nazara as Finance Minister on Sep 14, Danantara CEO Rosan Roeslani said the restructuring would continue under the new leadership. However, during the ministerial handover on Sep 15, Suahasil said further discussions are needed before implementation.

The proposed restructuring included government-backed management of KCIC’s debt obligations through a special mission vehicle (SMV) under the Finance Ministry. The government also considered transferring the stake to the Indonesia Investment Authority (INA), a sovereign wealth fund.

Under the proposed arrangement, debt repayments were to be spread over 80 years, with annual installments of around Rp 1 trillion if China agrees.

The project has been under continuing financial pressure after construction costs ballooned from an initial estimate of $5.5 billion to around $7.3 billion. The cost overrun was financed through additional borrowing from the China Development Bank at an interest rate of 3.4 percent. The initial financing was set at 2 percent.

Whoosh opened in October 2023 and has lost money ever since because ticket revenue is not sufficient to cover costs and interest on the high-prestige project. State railway Kereta Api Indonesia (KAI) is on the hook for the largest share in the project.

Whoosh recorded a net loss of Rp 5.13 trillion in the first half of 2026, exceeding its full-year loss of Rp 4.9 trillion in 2025, according to a report issued by KAI.

Economists warn that restructuring would shift rather than eliminate financial risks. Centre for Strategic and International Studies (CSIS) researcher Deni Friawan said using state-backed entities such as INA or SMI to manage repayments could raise concerns over future government support for financially troubled projects.

He said using INA for debt repayment could affect the fund’s investment mandate and credibility.

Despite ongoing financial concerns, the government remains committed to discussions with China on extending the Whoosh railway line to Surabaya.

Related Links:

Suahasil Expected to be Steady Hand as Indonesia Finance Boss

Newly appointed Indonesian Finance Minister Suahasil Nazara is expected to provide continuity and a measured approach to fiscal constraints to go with a different tone from his bullishly pro-growth predecessor, Purbaya Yudhi Sadewa.

“Suahasil will bring continuity through his understanding of the state budget architecture… but the swift transition must be backed by clear policy communication to avoid adding to uncertainty,” said Rizal Taufikurrahman, head of the center for macroeconomics and finance at the Institute for Development of Economics and Finance (Indef).

Time is of the essence, with the budget under pressure from priority spending, subsidies and heavy financing needs. 2026 is also expected to end with a larger-than-planned fiscal deficit of 2.85 percent of gross domestic product, just below the legal limit of 3 percent.

“Suahasil is known for a leadership that prioritizes governance and bureaucratic stability, fiscal credibility and policy predictability,” Airlangga University economics professor Rahma Gafmi said on Sep 15.

Suahasil is expected to stake out different ground than Purbaya, whose latest push was for Danantara to remit Rp 120 trillion (US$6.8 billion) in state-owned enterprise dividends to the state budget this year as a fiscal buffer.

Suahasil is more likely to look for fiscal room without leaning on a massive liquidity transfer that could trigger bureaucratic tensions, Gafmi said. The new minister could redirect spending, tap the government’s budget surplus, widen the revenue base and use special mission vehicles to finance strategic programs, she added.

At the handover ceremony, Suahasil called on stakeholders to seek collaboration; he praised Purbaya’s open communication style, saying it had helped improve the ministry’s public image.

Suahasil has pledged to maintain a “healthy, credible” state budget and stay within the legally mandated 3 percent limit. He declined to say what he would do about the Danantara dividend transfer and did not comment on the planned handover of debt linked to the Whoosh high-speed rail project to the Finance Ministry, which has been put on hold.

Shinta Kamdani, the chairwoman of the Indonesian Employers Association (Apindo), said after the ceremony that Suahasil was a trusted figure.

“Pak Suahasil has been around for a long time. We have worked closely since he was still at the Finance Ministry’s Fiscal Policy Agency (BKF), so we already have a very close working relationship, and I hope that can continue,” Shinta said.

Related Links:

Spatial Planning Ministry caught up in Bribery Probe

The latest government agency to come under suspicion of corruption is the Agrarian and Spatial Planning Ministry, which the Corruption Eradication Commission (KPK) is investigating over a bribery case involving right-to-build (HGB) permits that allegedly involved a Golkar Party politician, whom investigators described as a “right-hand man” to Minister Nusron Wahid.

Golkar politician Fahd El Fouz, who has previously been convicted of corruption, was detained on Sep 15 along with the president director of property developer PT Summarecon Agung, Adrianto Pitojo Adi; an intermediary representing the publicly listed company; a ministry director general and Bogor Land Office head Sontang Manurung. Investigators identified Fahd as an aide to Nusron, who is not a suspect.

Three other individuals, who like Fahd do not work at the ministry but allegedly are aides to Nusron, were also detained.

The case originated from the extension of nine HGB certificates for plots of land managed by Summarecon in Bogor. The permits were previously granted by the West Java Agrarian Planning Office and the Bogor Land Office and had been challenged by landowners at an administrative court in West Java.

KPK investigators allege that a group of Summarecon intermediaries approached Nusron’s aides to help unblock the permits. The KPK said land office head Sontang demanded Rp 2 billion (US$113,295) in bribes in exchange for his help but Summarecon president director Adrianto agreed to pay Rp 1.5 billion instead.

The KPK said similar payments were facilitated by Nusron’s aides, particularly Fahd, who collected the money.

The investigation has so far resulted in the seizure of Rp 106.3 billion in rupiah and foreign currencies, KPK acting investigations director Achmad Taufik Husein told a press briefing on Sep 15.

Taufik said investigators would further examine Nusron’s possible involvement as the investigation progresses.

Deputy agrarian planning minister Ossy Darmawan said the ministry would fully cooperate with the investigation. Summarecon issued a statement saying it respected the investigation while upholding the presumption of innocence until a court ruling is issued.

Related Links:

Gov’t Identifies 22 High-Risk Sites under Indonesia Child Protection Rules

The Ministry of Communication and Digital Affairs (Komdigi) has identified 22 high-risk digital platforms under Government Regulation 17/2025 (PP Tunas) and is completing a sanctions framework for operators that fail to comply with child protection requirements.

The list, released on Sep 14, was based on assessments of 252 products, features, and services submitted by 94 Electronic System Providers (PSEs). Komdigi verified 60 products and classified 22 as high-risk platforms.

Under PP TUNAS, digital products, services, and features are categorized as high- or low-risk based on their potential impact on children. High-risk services face stricter requirements, including restrictions on access for users under 16.

Low-risk services may be accessed by children aged 13-15, while children under 13 may only access low-risk services specifically designed for children, subject in both cases to verified parental consent.

Komdigi said several major platforms had begun taking steps to restrict underage access. X reported identifying around 250,000 users under 16, while Meta’s Facebook identified around 184,000. Both figures remain below government estimates of approximately 7 million and 33 million users, respectively.

YouTube has disabled around 600,000 child accounts and introduced additional safety features, while TikTok has disabled around 4.1 million child accounts.

Other high-risk platforms listed include messaging applications Telegram and Discord, visual discovery platform Pinterest, Indonesian online streaming service Vidio, tactical video game Valorant, and e-commerce platforms Lazada and Blibli, among others.

Komdigi is currently finalizing a sanctions mechanism for non-compliant platforms. Communications Minister Meutya Hafid said on Sep 14 that the formula had undergone public consultation and would be discussed with the Ministry of Finance for incorporation into regulations on non-tax state revenue (PNBP).

Domestic companies would face penalties based on business scale, with maximum fines of Rp 1 billion for micro enterprises, Rp 5 billion for small enterprises, and Rp 10 billion for medium-sized enterprises. Fines for large-scale or global digital platforms would reach a maximum of 6 percent of global revenue.

Officials said that platforms that continue to fail compliance requirements could face restrictions on specific features and possibly have their access to Indonesia blocked.

Related Links:

Fitch Holds INA Rating Steady at BBB

Citing strong government support, Fitch Ratings has affirmed the long-term default rating of the Indonesia Investment Authority (INA) at BBB with a negative outlook.

Fitch also affirmed INA's short-term foreign-currency issuer default rating at F2. Its long-term national rating remains at AAA(idn), with a stable outlook.

Fitch Senior Director and Primary Rating Analyst Paul Norris said the Indonesian government's support for INA, one of two Indonesian sovereign wealth funds, was a key factor behind the ratings. Fitch indicated that government support for INA would likely be given if needed.

"This reflects our assessment of the government's responsibility and incentive to support the issuer," Norris said in a written statement on Sep 16.

Norris said INA's ratings are aligned with those of the Indonesian government, which Fitch rates at BBB with a negative outlook. INA's negative long-term outlook also mirrors the government's outlook.

“The assessment is underpinned by INA's central policy role, its status as one of the highest profile entities in the government sector and contribution to Indonesia's strategic economic infrastructure,” Fitch noted in a statement.

Fitch also cited INA's governance and oversight structure as a factor supporting its assessment. INA reports directly to the president, while its supervisory board includes the finance minister and the head of the state-owned enterprise regulatory body.

INA's business activities also require approval based on key performance indicators, with quarterly operational and financial reporting.

Fitch said a default by INA could affect financing costs for the Indonesian government and would weaken overall investor confidence.

"However, this assessment is constrained by INA's limited debt and the fact that INA is not viewed as a benchmark issuer for the government in the debt markets," Norris said.

Fitch said it does not assign a Standalone Credit Profile to INA as the fund cannot realistically be separated from the government, which uses INA as a policy tool and thus maintains tight control.

Fitch said INA's financial position strengthened in 2025 as its revenue rose to Rp 8.5 trillion in from Rp 5.9 trillion a year earlier, while net profit also increased.

Fitch said INA's liquidity remained adequate, supported by cash, time deposits and bond holdings.

Related Links:

Get to Know Our Members | GOTO GOJEK TOKOPEDIA TBK, PT.

ID Logistics is a global company specializing in logistics management and operations across 19 countries, with a registered turnover of €3.737 billion in 2025. Established in Indonesia in 2007, the company currently manages 25 sites nationwide and operates more than 1,000 trucks daily, delivering integrated warehousing, transportation, and supply chain solutions to clients across the e-commerce, retail, fashion, and consumer goods sectors. The Group is also committed to a robust Corporate Social Responsibility (CSR) strategy that promotes sustainable operations and responsible business practices.

Now is the Time to Join AmCham!

We offer a full slate of meetings, events, and information for our community. But we can only do this through the support of our members. If you are not yet an AmCham member please join now.

AmCham Indonesia is open to all companies with an interest in US business relations and we have many non-American members.

We are a community and we welcome you!

Reach us at membership@amcham.or.id or click below!

JOIN AMCHAM

Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Donna Priadi and written by the AmCham Staff.

See All Events

InvestmentReport

See All Reports See AmCham Update

Twitter Feed

Tweets by TwitterDev

Video Gallery

Photo Gallery