Mounting losses raise fears of a financial “time bomb” for KAI as passenger numbers lag behind targets.
The Jakarta–Bandung high-speed rail project, Whoosh, faces mounting financial pressure as debt balloons to Rp116 trillion (US$7.2 billion). PT Kereta Api Indonesia (KAI) and state investment body Danantara are exploring options to restructure or refinance the burden, with lawmakers warning of long-term risks.
KAI Warns of “Time Bomb”
KAI President Director Bobby Rasyidin described the project’s debt load as a potential “time bomb” during a parliamentary hearing last week. Responding to criticism from Commission VI lawmakers, he admitted that losses at PT Kereta Cepat Indonesia China (KCIC) — the joint venture operating the line — pose a serious financial threat.
Debt and Losses Mount
The project’s debt has surged to Rp116 trillion, including a US$1.2 billion cost overrun. PSBI, a KAI subsidiary holding 58.53% of KCIC shares, booked losses of Rp4.19 trillion in 2024 and Rp1.62 trillion in the first half of 2025. With the largest stake in KCIC, KAI shoulders the bulk of the debt, alongside other state firms Wijaya Karya (33.36%), Jasa Marga (7.08%), and PTPN VIII (1.03%). China Railway’s consortium controls the remaining 40%.
Passenger Numbers Fall Short
The rail line, inaugurated with projections of 76,000 daily passengers under an optimistic scenario, has only achieved around 30% of that figure. Even against the “pessimistic” forecast of 50,000 daily passengers, current ridership remains below 50%, undermining revenue potential and debt repayment capacity.
Danantara Explores Financing Options
Danantara COO Dony Oskaria confirmed that solutions are being integrated into the 2025 corporate work plan. While no decision has been finalized, discussions include debt restructuring and potential refinancing. “This is under review, and coordination with KAI continues,” he said.
Lawmakers Call for Alternatives
Commission VI deputy chair Adisatrya Suryo Sulisto suggested transferring Whoosh’s ownership to the state to ease KAI’s burden. Other ideas floated include bond issuance or crowdfunding, which would keep the current shareholding structure intact while raising capital for KAI’s more profitable ventures in freight and executive passenger services.
Strain on KAI’s Finances
Observers warn that if left unresolved, the Whoosh debt could erode KAI’s earnings in other divisions, risking service quality across its wider rail network. The situation underscores the challenge of balancing ambitious infrastructure projects with long-term financial sustainability.
The Rp116 trillion debt of the Jakarta–Bandung high-speed rail project has become a critical test for Indonesia’s infrastructure financing. As KAI and Danantara search for solutions, the outcome will shape not only the future of Whoosh but also investor confidence in Indonesia’s ability to manage megaprojects sustainably.
Sources: CNA (2025) , Kompas (2025)
Keywords: KAI Debt, Whoosh Project, Jakarta Bandung Rail, Rp116 Trillion Debt, Danantara Solutions, Indonesia Transport
