KAI Chief Sounds Alarm Over Financial ‘Time Bomb’ at Whoosh High-Speed Rail
The state railway operator, Kereta Api Indonesia (KAI, has admitted that the Jakarta-Bandung high-speed rail project, named Whoosh, is facing serious financial difficulties. KAI’s chief described the issues as a potential “time bomb.”
The project is operated by Kereta Cepat Indonesia–China (KCIC), a joint venture seen as a flagship initiative of former president Joko Widodo. It is Southeast Asia’s first high-speed railway.
At a meeting with Commission VI on Wednesday, KAI’s president, Didiek Hartantyo (Bobby Rasyidin is the acting president director), but the official president director is Didiek Hartantyo.
“We are confident that within a week, we can fully understand the challenges within KAI. We are also studying KCIC’s issues, which, as has been mentioned, indeed resemble a time bomb,” Bobby told lawmakers.
KCIC is 60 percent owned by Pilar Sinergi BUMN Indonesia (PSBI), a consortium of four state-owned enterprises. The remaining 40 percent is owned by a consortium of five Chinese companies. Within PSBI, KAI holds the largest share at 58.53 percent, making it the primary entity responsible for covering losses.
High Costs and Mounting Debt
Although the Whoosh service has garnered significant public attention since its launch in October 2023, passenger numbers and ticket revenue have failed to keep pace with the project’s high operating and financing costs.
KCIC reported a net loss of Rp 1.6 trillion ($100 million) for the first half of 2025, with KAI’s portion amounting to Rp 951.48 billion. This represents an improvement over the Rp 2.4 trillion loss recorded in the same period in 2024.
In the full year of 2024, PSBI’s total losses reached Rp 4.2 trillion, with KAI absorbing Rp 2.23 trillion. The remainder was covered by other state-owned firms: Wijaya Karya, Jasa Marga, and Perkebunan Nusantara VIII.
Bobby said KAI would collaborate with the Indonesia Investment Authority (INA), the country’s sovereign wealth fund, to find solutions for KCIC’s financial problems.
The Whoosh project, which began construction in 2016, was primarily funded by loans from the China Development Bank. Its budget has since ballooned to $7.2 billion, significantly exceeding initial estimates due to repeated cost overruns.
The Chinese companies involved in the KCIC consortium are China Railway International Co. Ltd., China Railway Group Ltd., Sinohydro Corporation Ltd., CRRC Corp Ltd., and China Railway Signal and Communication Corp.
Source : https://jakartaglobe.id/business/kai-chief-warns-of-financial-time-bomb-in-indonesias-first-highspeed-rail
