👟 Walk the Talk: Whoosh Whammy
Acrostics Asia has been ahead of the curve on the debt woes plaguing the Jakarta-Bandung high-speed rail.
A model is only as good as its execution.
Rather than just reacting to events, Acrostics Asia connects the dots across Asia’s credit markets to help you anticipate what lies ahead.
The proof is in the file.
Key Timeline
Acrostics Asia flagged that Indonesian state-owned builders including Wijaya Karya were headed for a restructuring redux due to the infrastructure budget cuts and ballooning costs of the Jakarta-Bandung high-speed rail known as Whoosh.
Acrostics Asia wrote that Indonesia would have to come up with some hard cash as its typical SOE workaround of rolling over loans or converting debt into equity was unlikely to work with its Chinese partners.
Wijaya Karya President Director Agung Budi Waskito announced that the construction SOE was set to restructure its debt again in 2026 due to a sharp drop in revenue.
State Secretary Minister Prasetyo Hadi reportedly said that the Indonesian government would tap the state budget to repay roughly USD 7 billion of Whoosh debt owed to China.