OCTOBER 2025 JAKARTA —The Indonesian government has reaffirmed its commitment to extending the Whoosh high-speed rail line from Jakarta–Bandung to Surabaya, signalling a major step forward in the nation’s pursuit of enhanced inter-city connectivity. The initiative reflects Indonesia’s long-term strategy to expand its modern rail infrastructure while maintaining fiscal prudence amid the operator’s ongoing debt challenges.

Minister of State Secretary Prasetyo Hadi confirmed that the government is determined to push ahead with the extension plan, identifying Surabaya as a key destination in the next phase of development. At the same time, officials are actively exploring solutions to address the financial obligations of PT Kereta Cepat Indonesia China (KCIC) the operator of the Whoosh line without drawing on the State Budget (APBN).

Finance Minister Purbaya Yudhi Sadewa reiterated that public funds will not be used to cover KCIC’s debt, emphasizing that the responsibility lies with Danantara, the newly established holding company overseeing state-owned enterprises. The government’s approach reflects a clear focus on financial independence and sustainable infrastructure investment, potentially setting a benchmark for future large-scale projects.

Danantara Chief Operating Officer Dony Oskaria outlined potential debt management strategies, including equity restructuring or asset transfers, while highlighting the Whoosh line’s early success in boosting travel efficiency between Jakarta and Bandung. He noted that the project has delivered measurable economic benefits and underscored the importance of maintaining the financial health of PT Kereta Api Indonesia (KAI), a key stakeholder in the national railway ecosystem.

The extension to Surabaya forms part of Indonesia’s broader vision for a nationwide high-speed rail network, designed to improve regional connectivity, stimulate economic growth, and strengthen the country’s position in Asia’s rapidly developing transport sector. By balancing expansion with prudent fiscal management, Indonesia aims to demonstrate that major infrastructure growth can coexist with responsible financial stewardship.

Source: Tempo.co