Indonesia's investment agency takes over debt restructuring of Yavan Express Railway

The Yavan High Speed Rail (HSR), a mega-project under former President Joko's administration, was mainly financed by a loan from China's China Development Bank (CDB), with the remainder coming from the state budget and capital from a consortium of state-owned enterprises from Indonesia and China.

The project has been in operation sinceConstruction began in 2016 with a cost overrun of $1.2 billion, or about 18.02 trillion rupiahs. As a result of a joint audit by the two countries.The total construction cost amounted to $7.27 billion, or about 108.14 trillion rupiahsThe

Indonesia's National Investment Authority (BPI Danantara) plans to restructure the debt of the Yavan Express Railway, its chief executive saidThe plan is being evaluated to ensure that the reorganization process is comprehensive and not just a delayed issue. The COO statedA number of solutions will be proposed to the government, but no specific details have yet been announcedTheThe reorganization is aimed at preserving the operations of the relevant state-owned enterprises, in particular Indonesian Railways, which is the lead party in the Indonesian consortium, and ensuring that its future operations are not affected.

PT KCIC, the operator of the Yawan HSR, is a joint venture, with the Indonesian consortium (PT Pilar Sinergi BUMN Indonesia, PSBI) holding 60% and the Chinese consortium (Beijing Yawan HSR Co. Ltd.) holding 40%.The composition of the PSBI and the proportion of its shareholding are as follows: KAI The composition and shareholding of PSBI are as follows: Indonesian Railways (KAI) 51.371 TP3T, Wijaya Karya (WIKA) 39.121 TP3T, Jasa Marga 8.301 TP3T, Perkebunan Nusantara I 1.211 TP3T.