Whoosh Investment Drags WIKA Finances by Up to Rp 1.8 Trillion Annually
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- WIKA says its investment in the Whoosh high-speed rail project is generating annual losses of up to Rp 1.8 trillion, putting sustained pressure on the company’s finances.
- The state-owned builder is seeking a way to reduce the burden by divesting its asset stake, although the process is complicated by its role under a presidential regulation.
- At the same time, WIKA is pursuing a Rp 5.02 trillion cost overrun claim against KCIC, with mediation expected to conclude by the end of 2026.
JAKARTA — State-owned construction company PT Wijaya Karya (Persero) Tbk (WIKA) has reported steep losses linked to its involvement in the Jakarta-Bandung high-speed rail project, also known as Whoosh. The company said the investment has generated average annual losses of around Rp 1.7 trillion to Rp 1.8 trillion.
The recurring financial burden has become a major obstacle to WIKA’s efforts to restore profitability. President director Agung Budi Waskito acknowledged that the continuing losses have placed significant pressure on the company’s overall financial performance.
“In 2025, if I’m not mistaken, the loss recorded was around Rp 1.7 trillion or Rp 1.8 trillion,” Agung said in North Jakarta on Monday. WIKA currently holds a 33.36 percent stake in PT Pilar Sinergi BUMN Indonesia (PSBI), the consortium involved in the project.
WIKA’s management has said it wants to divest its asset ownership in the high-speed rail project in an effort to reduce the annual burden. However, the company admitted that such a move would be difficult because its involvement is stipulated under a presidential regulation.
The company has asked the government, or Danantara, to take into account WIKA’s position as essentially a contractor in the project. Any decision on a possible asset release, however, falls entirely under the authority of the central government.
“It is not easy for us to let go of the high-speed rail asset,” Agung said in remarks to reporters. At the same time, WIKA remains focused on resolving its Rp 5.02 trillion cost overrun claim.
The mediation process over the additional cost claim is still ongoing between WIKA and KCIC. Both parties have also agreed to postpone arbitration proceedings at the Singapore International Arbitration Centre (SIAC).
The government is targeting a full resolution of the cost dispute mediation by the end of 2026. A settlement is expected to provide greater clarity over the financial position of the state-controlled construction firm.
WIKA is also continuing to coordinate with other PSBI shareholders, including state railway operator KAI, plantation firm PTPN I and toll road operator Jasa Marga. The composition of shareholders on the Chinese consortium side is also being monitored to help align long-term project interests.
The continued operation of Whoosh remains a national strategic priority despite the financial strain borne by contractors involved in the investment. Going forward, policy alignment between state-assigned infrastructure obligations and the financial health of state-owned enterprises will be crucial.
Investing | Indonesianpost
