The Train Project Between China and Indonesia: A Strategy for Chinese Hegemony over Indonesia
News:
Indonesia is considering renegotiating the debts of the Jakarta-Bandung high-speed train project, known as "Whoosh," due to the significant financial burden it places on the Indonesian Railway Company (KAI). State-Owned Enterprises Minister Erick Thohir said that the plan would allow KAI to manage the trains while the state takes responsibility for the infrastructure. The $7.3 billion project was mainly financed by loans from the China Development Bank, with an initial interest rate of 2%. However, disruptions caused by the Corona pandemic and land acquisition issues drove costs up, necessitating additional financing at 3.4% interest. Although the project succeeded in reducing the travel time between Jakarta and Bandung to just 45 minutes and transporting 2.9 million passengers in early 2025, it caused significant debt pressure. KAI recorded losses of 1.24 trillion rupiah from the project in the first half of 2025. Erick emphasized that resolving this issue must precede the expansion of the Jakarta-Surabaya high-speed train project. (Source)
Comment:
Since its inception, the Jakarta-Bandung high-speed train project (Whoosh) has faced widespread criticism from various parties, ranging from economists and academics to ordinary people. The most prominent of these criticisms revolve around the exorbitant cost of the project, which exceeded 100 trillion rupiah, largely financed by loans from the China Development Bank. Despite repeated warnings and objections, the government insisted on proceeding with the project under the pretext of modernizing the transportation sector and reducing travel time. However, reality shows that the Jakarta-Bandung transport line was already served by many accessible and widely available means such as regular trains, buses and travel services. Therefore, this project seems more like a political showpiece project than a real solution to the public transport needs in Indonesia.
Now, after its operation, the problems that were previously warned about have actually begun to appear. The project has become a huge financial burden on the Indonesian Railway Company (KAI), which continues to record significant losses. Indonesia is now preparing to renegotiate its debts with China, which reveals that the project was not carefully planned from the beginning. Beyond the financial aspect, this project reflects how Indonesia has become more connected to China's political and economic interests. As the main creditor, China has significant influence that allows it to influence Indonesia's policies, both economically and diplomatically.
On a broader scale, the high-speed train is just one example of China's deepening grip on the Indonesian economy. In the nickel sector, for example, Chinese companies dominate the entire production chain from upstream to downstream, often bringing in large numbers of their workers. In addition, non-metallic products such as electronics and consumer goods flood the local market, making Indonesia increasingly dependent on Chinese imports. As a result, the huge potential of the Indonesian market and its natural resources no longer primarily benefit its people, but are exploited by foreign powers.
Ironically, after decades of Western hegemony through European and American multinational corporations, it seems that Indonesia has simply moved to a new master, China, which has become a prominent player. China's economic hegemony is no less fierce, and the Jakarta-Bandung high-speed train project is just one of its gateways. Ultimately, without careful planning and courage in protecting economic sovereignty, Indonesia may lose control of its vast potential, leaving its citizens as mere spectators in their homeland.
Written for the Media Office of Hizb ut-Tahrir Central
Abdullah Aswar
