China says ready to work with Indonesia on Southeast Asia’s 1st bullet train amid debt issues

ISTANBUL

China said on Monday that it was ready to work with Indonesia on facilitating Southeast Asia’s first bullet train amid financial challenges and debt issues.

Since the launch of the Jakarta-Bandung high-speed railway train two years ago, the railway has maintained “safe, unimpeded and orderly operation,” Chinese Foreign Ministry spokesman Guo Jiakun told reporters in Beijing.

“It has provided services for over 11.71 million passengers, with passenger flow still increasing steadily, and its economic and social benefit continues to be unleashed, creating large amounts of jobs for the local people and boosting economic growth along the line,” Guo said.

Indonesia’s sovereign wealth fund Danantara said on Friday that Jakarta will make its final decision on the solution to the country's train debt to China by year-end.

“Governments of the two countries attach great importance to the development of the project. Competent authorities and companies of the two sides have maintained close coordination to provide strong support for the safe and stable operation of the railway,” Guo added.

He mentioned that the “public benefit and comprehensive returns” of the railway project should also be taken into consideration apart from the “financial figures and economic indicators,” when assessing the project.

“China stands ready to work with Indonesia to continue facilitating the high-quality operation of the Jakarta-Bandung high-speed railway so that the project will play a bigger role in driving Indonesia’s economic and social development and enhancing connectivity in the region,” he noted.

China Development Bank had funded some 75% of the total cost to build the Jakarta-Bandung high-speed railway, popularly known as Whoosh, that had a price tag of $7.3 billion. The railway was officially launched in October 2023.

"Indonesia is now facing financial stress as it must pay Rp (Indonesian Rupiah) 2 trillion ($120.6 million) in interest each year," according to the Jakarta Globe News website.