Who will shoulder the debts behind Indonesia’s China-backed Whoosh railway?
Jakarta plans to transfer the US$56.5 million annual debt into state accounts as critics warn taxpayers will subsidise the losses
The government has argued that the burden is manageable after the debt was restructured over 80 years, requiring annual instalments of about 1 trillion rupiah (US$56.5 million). But the plan has also raised concerns that taxpayers are being left to subsidise a project that has strained state firms after its budget ballooned from an initial US$6.02 billion to about US$7.3 billion.
The railway connects the Indonesian capital to West Java’s provincial capital in 45 minutes, far faster than driving, which can take up to three hours.
Whoosh is operated by Kereta Cepat Indonesia-China (KCIC), a joint venture between a Chinese consortium and an Indonesian state-owned consortium led by national rail operator Kereta Api Indonesia (KAI).
