WEST JAVA, October — The Jakarta–Bandung high-speed railway, known as Whoosh, marks a major milestone in Indonesia’s transport modernization, enhancing connectivity and economic integration between Jakarta and West Java. As Southeast Asia’s first high-speed rail, the project stands as a symbol of technological progress and regional cooperation yet it also underscores the growing focus on fiscal responsibility in large-scale infrastructure ventures.

Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, confirmed that the State Budget will not be used to cover the debts of the Jakarta–Bandung high-speed railway, which is operated by PT Kereta Cepat Indonesia China (KCIC). Instead, the responsibility for managing these financial obligations has been entrusted to Danantara Indonesia, the nation’s sovereign wealth fund.

Danantara is currently evaluating two key settlement strategies either assuming ownership of the railway’s infrastructure or injecting new capital to address the project’s outstanding liabilities. This approach reflects a deliberate effort by the government to safeguard national fiscal stability while ensuring that large infrastructure projects remain financially sustainable.

With daily ridership now averaging around 30,000 passengers, the Whoosh line continues to demonstrate strong operational demand. At the same time, negotiations with Chinese partners are ongoing to restructure the project’s debt and develop a more sustainable financing model.

The move highlights Indonesia’s evolving infrastructure strategy one that prioritizes financial prudence, institutional accountability, and long-term economic resilience. As the nation expands its high-speed rail network, the Jakarta–Bandung project serves as a case study in balancing ambitious development goals with sound fiscal governance.

Source: ANTARA News