JAKARTA – An Indonesian-Chinese joint venture operating South-east Asia’s first high-speed train, Whoosh, will receive financial support from the state’s coffers, President Prabowo Subianto said on Nov 4.

The consortium called Kereta Cepat Indonesia-China (KCIC) is currently in advanced talks to restructure around 85 trillion rupiah (S$6.63 billion) debts with China Development Bank (CDB), as it struggles to cover interest payments.

“Basically, there is no problem. We would pay maybe around 1.2 trillion rupiah per year (in interest expense). Consider the benefits – reduced traffic jams, lower pollution, faster (inter-city) travels. All these have to be taken into account,” Mr Prabowo told reporters after inaugurating a new commuter train station in Jakarta.

The 142-km line, which went into operation in October 2023, generates sufficient revenue from ticket sales to cover operating costs, but ridership has fallen short of targets.

The service connects the capital Jakarta and Bandung, the country’s third-largest city, and can reach a speed of up to 350 kmh. Total travel time is 45 minutes.

Mr Prabowo added that a study is needed to explore extending the line to Banyuwangi – the easternmost city in Java that is located right across the popular main tourist island of Bali.

“Last time we talked about extending it to Surabaya (the largest city in East Java). We are past that. We are talking about Banyuwangi now,” Mr Prabowo also said, pointing out that the project is a symbol of Indonesia-China’s good bilateral relations.

Experts said extending the line to Surabaya, about 780 km east of Jakarta, would attract more passengers than the current 45-minute Jakarta-Bandung route, which can also be covered by a two-hour car drive.

Whoosh came under media spotlight when observers made critical comments, comparing the high-speed railway’s cost to a similar project in China. Indonesia’s anti-graft agency KPK has also started an investigation into possible cost mark-ups.