Troubled Whoosh High-Speed Rail Gets Indonesia Backing in Debt Restructuring Talks with China

JAKARTA — Indonesian President Prabowo Subianto said the government will provide financial support to the Indonesia-China joint venture operating the Whoosh high-speed rail as it restructures 85 trillion rupiah (S$6.6 billion) in debt with China Development Bank. The Kereta Cepat Indonesia China (KCIC) consortium, which runs South-east Asia’s first high-speed train, faces heavy interest payments despite covering operating costs.

Whoosh High-Speed Rail

The 142km Jakarta–Bandung line began operations in October 2023, cutting travel time to 45 minutes but missing ridership targets. Prabowo defended the project’s benefits, citing reduced congestion and pollution, and said studies were underway to extend the line to Banyuwangi in East Java. The US$7.3 billion project, 75 per cent debt-financed, is now seeking longer loan tenures and lower interest rates. China’s government reiterated support, calling Whoosh vital for Indonesia’s connectivity and economic growth.

Business News