JAKARTA, November 2025 —Indonesia’s ambitious Whoosh high-speed rail project, linking Jakarta and Bandung, is now eyed for a major expansion, highlighting the country’s continued investment in modern rail infrastructure. President Prabowo Subianto has proposed extending the line by approximately 1,000 km, aiming for Banyuwangi in East Java significantly beyond earlier expansion plans to Surabaya.

Addressing concerns over debt, Prabowo stated that Indonesia is capable of managing the high-speed rail’s financial burden, including an annual interest payment of around US$ 72 million. He justified this cost by highlighting the social, environmental, and congestion‑reduction benefits of the project.

In response to the president’s vision, PT Kereta Api Indonesia (KAI) the state railway operator confirmed its readiness to support the expansion to both Surabaya and Banyuwangi, saying there is no operational barrier and that occupancy has been increasing.

Financially, the Whoosh project estimated at US$7.3 billion is largely funded by a China Development Bank loan. However, it has posted significant losses: in 2024, the operating joint venture recorded a loss of about Rp 4.195 trillion (~US$ 251 million), and by July 2025, it had lost another Rp 1.625 trillion.

On governance, the Corruption Eradication Commission (KPK) has affirmed that its investigation into potential corruption in the Whoosh project will continue, despite Prabowo’s public assurances. Prabowo has said that if corruption is curbed, “sufficient funds” will remain to service the rail debt.

This push for expansion, paired with assurances on debt management, reflects Indonesia’s strategic commitment to leveraging high-speed rail as both an infrastructure priority and a long-term development tool. But the scale of debt, ongoing losses, and anti-graft scrutiny all underscore the financial and political risks inherent in such a transformative project.

Source: Channel News Asia