Indonesia has inaugurated its first high-speed railway, a project backed by China that aims to connect the capital Jakarta with the city of Bandung in West Java. The railway, which is part of China’s Belt and Road Initiative (BRI), is expected to reduce travel time between the two cities from three hours to about 40 minutes. However, the project has also raised concerns about its financial viability and environmental impact.
A Symbol of Modernization
President Joko Widodo officially launched the railway on Monday, October 9, 2023, at Halim station in eastern Jakarta. He named the train “Whoosh”, which means “timesaving, optimal operation, reliable system” in Indonesian language. He hailed the railway as “a symbol of our modernization” and “a milestone of our infrastructure development”.
The railway, which cost $7.3 billion, was constructed by a joint venture between an Indonesian consortium of four state-owned companies and China Railway International Co. Ltd. It was financed with a loan from the China Development Bank for 75 percent of the cost. The railway has four stations: Halim, Karawang, Walini, and Padalarang. It can reach speeds of up to 350 kilometers per hour (217 miles per hour), making it the fastest in Southeast Asia.
Widodo said that the railway would not only improve transportation efficiency and connectivity, but also promote economic growth and tourism in the region. He also said that Indonesia would learn from China’s technology and experience in building high-speed railways, and that the project would create more jobs and opportunities for local workers and businesses.
A Source of Controversy
However, the railway project has also faced many challenges and criticisms since it was signed in October 2015, after Indonesia selected China over Japan in a fierce bidding war. The project has been plagued by delays, cost overruns, land acquisition problems, legal disputes, and technical issues. It was originally scheduled to be completed by 2019, but was pushed back several times due to various obstacles.
The project has also sparked concerns about its economic feasibility and environmental impact. Some analysts have questioned whether the railway would generate enough revenue and passengers to cover its operational and maintenance costs, as well as repay its debt to China. They have warned that the project could become a debt trap for Indonesia, especially if it fails to meet its performance targets or faces currency fluctuations.
Moreover, some environmentalists have criticized the project for causing deforestation, soil erosion, water pollution, and habitat loss along its route. They have argued that the project did not conduct adequate environmental assessments or consultations with local communities before proceeding with construction. They have also claimed that the project violated some laws and regulations regarding land use and conservation.
A Test Case for BRI
The railway project is seen as a test case for China’s BRI, a massive global infrastructure initiative that aims to boost trade and connectivity across Asia, Africa, Europe, and beyond. China has invested billions of dollars in various projects under BRI, such as roads, ports, power plants, and railways. However, some of these projects have also faced criticism and backlash from some countries and regions over issues such as debt sustainability, transparency, governance, sovereignty, and environmental protection.
Indonesia is one of the key partners of China in BRI, as it is the largest economy and population in Southeast Asia. China is also Indonesia’s largest trading partner and one of its major sources of foreign investment. Besides the high-speed railway, China is also involved in other projects in Indonesia under BRI, such as industrial parks, hydropower plants, fiber optic cables, and digital platforms.
Indonesia has welcomed China’s involvement in its infrastructure development, as it seeks to address its infrastructure gap and boost its economic growth. However, Indonesia has also maintained a cautious and pragmatic approach towards BRI, as it balances its relations with other major powers such as the United States, Japan, India, and Australia. Indonesia has also emphasized its own interests and sovereignty in dealing with China on BRI projects.
