Prabowo wants to extend Whoosh by about 1,000km; says Indonesia ‘strong enough’ to handle high-speed rail debt
Indonesia's president said he sees no issue paying around US$72 million annually in interest expense, because the rail project’s benefits must be taken into account.
Indonesia President Prabowo Subianto (left) on a train at the inauguration of the new Tanah Abang station in Jakarta, Nov 4, 2025. (Photo: Facebook/Prabowo Subianto)
JAKARTA: Indonesia President Prabowo Subianto has said he wants to extend the Whoosh high-speed rail (HSR) to Java’s easternmost city of Banyuwangi, beyond the city of Surabaya that was earlier touted as the end point should the project be expanded.
Amid ongoing concerns over Whoosh’s debt, Prabowo also said he would take responsibility for Whoosh.
The project should not be judged by its financial losses given its social benefits such as reducing travel time and air pollution, he told the media on Tuesday (Nov 4) at the inauguration of the new Tanah Abang Station in Central Jakarta.
“I have said that, as president of the Republic of Indonesia, I will take responsibility for this issue. Hence, there’s no need for commotion because we are strong enough to handle it,” he said, as reported by state news agency Antara.
“I don’t see any issue with us paying Rp1.2 trillion (around US$72 million) annually in (interest expense), because this transport system helps reduce traffic congestion, air pollution, and travel time – benefits that must be taken into account,” he said.
Whoosh began operating in October 2023 and covers a 142km stretch between Jakarta and Bandung in 45 minutes. The US$7.3 billion project was financed largely through a US$5.4 billion loan from the China Development Bank, which covered about 75 per cent of the total cost.
Bandung is about 700km by road to Surabaya, and Banyuwangi is another 300km eastwards of Surabaya.
This means the extension could potentially run for about 1,000km, depending on the route.
“I want the railway network to be expanded to Banyuwangi, not just stop in Surabaya. The target of reaching Surabaya is in the past because we now aim to cover Banyuwangi,” said Prabowo.
The Indonesia-China joint venture running the HSR is 60-per-cent owned by a group of Indonesian state enterprises called PT Pilar Sinergi BUMN Indonesia. Kereta Api Indonesia (KAI) holds the largest stake in PT Pilar Sinergi BUMN Indonesia.
In its unaudited financial report as of Jun 30, 2025, published on KAI's official website, PT Pilar Sinergi BUMN Indonesia recorded losses of up to 4.195 trillion rupiah (US$251.3 million) throughout 2024, and these losses continued into this year. From January to July 2025, it recorded losses of 1.625 trillion rupiah.
STATE FUNDING FOR WHOOSH’S DEBT?
Finance Minister Purbaya Yudhi Sadewa recently ruled out state budget spending to service Whoosh’s debt, saying the state-owned enterprises involved in Whoosh were managed by sovereign wealth fund Danantara.
But on Tuesday, Prabowo said that if the administration continues to crack down on corruption, there would be “sufficient funds available” to serve the people, including to cover Whoosh’s debts.
“The money comes from the people, from taxes and the nation’s wealth. Therefore, we must prevent any leakage. We must put an end to abuse and corruption. The people’s money cannot be stolen and we will ensure that public services are returned to the people,” he said, as reported by news outlet The Jakarta Post.
A day earlier, Coordinating Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono had said the repayment of Whoosh’s debt may be backed by the government and funded through the state budget, reported The Jakarta Post.
He said the government was preparing several restructuring options, including a “burden-sharing” scheme with relevant stakeholders in the project.
According to Agus, the Transportation Ministry, Finance Ministry, Office of the Coordinating Economy Minister and Danantara had agreed to share responsibility, while the government continued negotiations with the Chinese side on the debt restructuring process, The Jakarta Post reported.
Prabowo said Indonesia has sufficient financial capacity to maintain Whoosh’s operations without straining the state budget, Antara reported on Tuesday.
“There’s no need to worry. We will continue to serve and fight for the people,” he said.
Last week, Indonesia’s Corruption Eradication Commission (KPK) said it was probing the Whoosh project. The KPK began collecting data and information in early 2025 and preliminary investigations are ongoing, Indonesian media outlets reported.
Former Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD had raised the issue in his podcast on Oct 14, claiming that the construction cost per kilometre of Whoosh reached US$52 million, far higher than in China, where the cost was only US$17 million to US$18 million per kilometre.
“It’s three times higher — who increased it? Where did the money go?” Mahfud said in his podcast.
He also highlighted the transfer of the project contract from Japan to China in 2015 to 2016, which caused the loan interest rate to jump from 0.1 per cent (Japan’s offer) to 3.4 per cent (China’s contract). According to him, this significantly increased the project’s financing burden.
Mahfud, a vice-presidential candidate in Indonesia’s 2024 election, urged KPK to investigate those involved in the contract transfer.
In response, KPK said that it would act according to proper procedures and asked Mahfud to submit any official data or evidence he possessed.
In turn, Mahfud claimed that under criminal law, law enforcement should be able to follow up on indications of a crime even without a formal report. He said he was ready to comply with any KPK summons if his testimony was needed.
