What we do?

Opinion article developed by Omar Narrea, researcher at the Center for China and Asia-Pacific Studies, Universidad del Pacífico. (Lima, Peru)

Indonesia has finally joined Japan, South Korea, and China in the high-speed rail club. Since early 2024, a so-called “Whoosh” train named after the sound it makes as it passes over the tracks has been operating between Jakarta and Bandung, which connects the country’s major cities.

Trains are not new in Indonesia. In fact, they date back to the era when trains made a “Choo-Choo” sound, as they are a Dutch legacy inaugurated in 1862 to transport goods from the agricultural regions of Semarang and Yogyakarta. By 1939, the railway network spanned 6,811 kilometers, covering the country’s three main islands. Before the “Whoosh,” there was already a train linking Jakarta and Bandung, but it took 3 hours to complete the journey.

In addition to these comfortable intercity trains, the capital has a mass transit system that includes metro lines, segregated bus lanes, and commuter trains. Despite the extent of these urban systems, they are not well interconnected, making it common for people to opt for a motorcycle ride near metro stations, especially during peak hours. In high-demand locations, such as airports or train stations, Grab also operates (Grab provides everyday services). It is not just a ride-hailing app but a parallel transport system with its own signage and support staff at key stops.

Implementing high-speed rail was a major challenge. After rejecting a Japanese offer, the project was awarded to the PT Kereta Cepat Indonesia-China (PT KCIC) consortium, with 60% of the investment from Indonesian companies and 40% from Chinese companies, notably China Railway Corporation. This allowed access to 75% of the project’s finance from the China Development Bank. It also ascertained the involvement of a partner who could achieve high speeds, at the limit of 350 kilometers per hour, transferring technology to the Indonesian rail operator, enabling local job creation in order to enhance Indonesia’s capabilities. (PR Newswire 2023).

Since the project began in 2019, delays arose due to the relaxation of environmental permits, which overlooked key risks such as water management and land acquisition. When the project’s cost rose from $5.5 billion to $7.2 billion, KCIC faced increased demands to follow a concrete execution plan. The government committed to finance an extension to the budget but exerted higher control over the project through an increase in involvement from the state-owned railway company, Kereta Api Indonesia (The Diplomat, 2024).

Finally, the project was launched in October 2023. It is expected that by July 2024, a total of 4 million trips will be made in an average of 48 daily transport services. (Antara, 2024). While in past centuries trains were used to exploit natural resources, the “Whoosh” opens the door to the 4.0 economy, enabling more people to access competitive labor markets and enhancing businesses in Jakarta and Bandung to be more productive.

The “Whoosh” project distinguishes Indonesia from its neighboring countries. However, some pending challenges still exist in the mobility field. As an example, reaching the station at high velocity can delay more than the trip itself in “Whoosh.” New projects, such as the transition of the capital or of the politics of productive diversification based on natural resources, also seek to maintain Indonesia in an accelerated dynamic of change.

References:

The Diplomat. (2024, July 4). Why Indonesia’s state-owned railway company is taking on debt. The Diplomat. https://thediplomat.com/why-indonesias-state-owned-railway-company-is-taking-on-debt

Antara. (2024, July 13). Whoosh fast train served four million passengers. Antara. https://antara.news/whoosh-fast-train-served-four-million-passengers

PR Newswire. (2023, November 9). A closer look at China-Indonesia cooperation on Jakarta-Bandung HSR. PR Newswire. https://prnewswire.com/a-closer-look-at-china-indonesia-cooperation-on-jakarta-bandung-hsr