China Addresses Jakarta-Bandung High Speed Rail Debt

china Defends Jakarta-Bandung High-Speed Rail Amid Debt Restructuring Debate

Indonesia’s ambitious Jakarta-Bandung Fast Train project, known locally as Whoosh, remains a point of contention as discussions surrounding its substantial debt continue. China’s Ministry of foreign affairs has publicly addressed concerns regarding potential financial difficulties and ongoing negotiations for debt restructuring, emphasizing the project’s economic benefits and operational success.

The Chinese goverment maintains that the high-speed railway is progressing favorably and delivering meaningful economic advantages to Indonesia, despite increasing domestic pressure to revise the financing arrangements.A spokesperson for the Ministry of Foreign affairs, Guo Jiakun, responded to recent reports detailing Indonesia’s exploration of debt restructuring options with China.

“It has been two years as the Jakarta-Bandung high-speed train officially operated,” Guo Jiakun stated during a regular press conference on Monday, october 20, 2025. “Over the past two years, the train has maintained safe, unimpeded and orderly operations.”

Guo highlighted that the railway has already transported over 11.71 million passengers, with ridership continuing to climb. This increased traffic, according to the spokesperson, is generating positive economic and social outcomes for local communities, including job creation and economic growth along the railway’s route.”This has been recognized and welcomed by various sectors in Indonesia,” Guo added.

The Chinese official stressed that evaluating the success of high-speed rail projects requires a holistic approach, considering not only financial metrics but also broader public benefits and overall results. China has affirmed its commitment to continued collaboration with Indonesia. “China is ready to work with Indonesia to continue to facilitate high-quality jakarta-Bandung high-speed train operations so that the project will play a greater role in driving Indonesia’s economic and social progress and improving connectivity in the region,” Guo concluded.

Did you know? – The Jakarta-Bandung high-speed rail, nicknamed “Whoosh,” began commercial operations in October 2023. It is Indonesia’s first high-speed railway, reducing travel time between the two cities.

However, the project’s debt burden – totaling approximately US$7.26 billion (around Rp. 119.79 trillion) – remains a central concern. Indonesia’s Minister of Finance,Purbaya Yudhi Sadewa,has firmly rejected the possibility of utilizing the State Revenue and Expenditure Budget (APBN) to cover the project’s debts.

Purbaya has consistently maintained that the Fast Train debt is the responsibility of state-owned enterprises (BUMN),not the national budget. He expressed confidence in the ability of assigned companies, specifically Danantara (PT Penjaminan Infrastruktur Indonesia) and PT Kereta Api Indonesia (Persero) / KAI, to manage the debt.Purbaya believes that dividends from these state-owned enterprises are sufficient to cover the Fast Train debt installments.

Pro tip: – Debt restructuring involves renegotiating payment terms with creditors. This can include extending repayment periods or reducing interest rates to ease financial strain.

Despite the Minister of Finance’s stance, the Chairman of the National Economic Council, Luhut Binsar Pandjaitan, previously confirmed that both the Indonesian and Chinese governments had reached an agreement to restructure the KCJB project’s financing. This restructuring cou

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