KAI's half-year profit slashed as Whoosh railway losses flow through PSBI
State-owned Kereta api Indonesia said its first-half profit fell sharply because it had to absorb losses from the Whoosh high-speed line operated by KCIC.
During a parliamentary hearing, KAI chief executive Bobby Rasyidin explained that the railway operator’s half-year profit dropped to Rp300 billion, compared with an expected Rp3.4 trillion if the Whoosh high-speed railway’s losses were excluded. KAI leads the PSBI consortium, which controls a 60 percent share of KCIC, the firm running the Jakarta-Bandung Whoosh line. Because of this structure, KAI must absorb KCIC’s operating deficits, which reduced KAI’s earnings by roughly 73 percent from the same period last year.
As of June 30, KAI recognized a Rp3 trillion share of PSBI’s net losses and wrote down the carrying value of its investment from Rp4.79 trillion to Rp1.79 trillion. An impairment allowance of Rp1.55 trillion was also recorded, reflecting the financial strain from the high-speed project.
Why it matters
The story shows how Indonesia’s flagship railway operator is financially strained by its commitment to the costly Whoosh high-speed project.
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