KAI Reports Nearly Rp1 Trillion Loss on Jakarta-Bandung High-Speed Rail Project
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Jakarta – State-owned railway company PT Kereta Api Indonesia (Persero), or KAI, recorded a loss approaching Rp1 trillion (approximately $65.4 million USD) on the Jakarta-Bandung high-speed railway project, known as Whoosh, during the first semester of 2025. The financial setback stems from KAI’s majority stake in PT Pilar Sinergi BUMN Indonesia (PSBI), the consortium managing the ambitious infrastructure undertaking.
Financial Strain on KAI
The loss, totaling Rp951.48 billion as of June 2025, is detailed in KAI’s consolidated financial statements. KAI holds a 58.53 percent ownership share in PSBI. Extrapolating these figures, a full-year loss is estimated to reach approximately Rp1.9 trillion, a decrease from the Rp2.69 trillion loss recorded in 2024, but still representing a important financial burden for the state-owned enterprise.
The data was disclosed in a management statement released to the Indonesia Stock Exchange (IDX) on Saturday, August 16, 2025. PSBI’s ownership extends beyond KAI, including stakes held by PT Wijaya Karya (Persero) Tbk (WIKA) and PT Jasa Marga (Persero) tbk (JSMR).
project Challenges and Cost Overruns
The formation of PSBI was a strategic response to the funding and management complexities of the Whoosh project, which encountered hurdles related to land acquisition and evolving construction designs. The total investment for the high-speed rail line reached $7.2 billion (Rp116.54 trillion,based on an exchange rate of Rp16,186 per US dollar),including $1.2 billion (Rp19.42 trillion) in cost overruns. These escalating costs are now a priority for restructuring by the Indonesia Investment Authority.
did You Know? The Jakarta-Bandung high-speed rail line is Indonesia’s first of its kind, aiming to revolutionize transportation between the two major cities.
The financial impact of Whoosh began to affect KAI’s statements following the project’s commercial launch in October 2023. Currently, revenue generated by the railway has not yet offset the ample investment and operational expenses.
Key Project Figures
| Metric | Value |
|---|---|
| First Semester Loss (2025) | Rp951.48 billion |
| Estimated Full-Year Loss (2025) | Rp1.9 trillion |
| Full-Year loss (2024) | Rp2.69 trillion |
| Total Project Investment | $7.2 billion (Rp116.54 trillion) |
| Cost Overruns | $1.2 billion (Rp19.42 trillion) |
Pro Tip: Understanding the complexities of infrastructure projects like Whoosh requires considering not only direct costs but also potential economic benefits and long-term sustainability.
What long-term strategies can KAI implement to ensure the financial viability of the Jakarta-Bandung high-speed rail project? And how will these losses impact future infrastructure investments in Indonesia?
The Indonesian government has long prioritized infrastructure advancement as a key driver of economic growth. According to the World bank, investments in infrastructure are crucial for improving connectivity, reducing logistics costs, and attracting foreign investment (World bank Infrastructure Overview). However, projects of this scale often present significant financial risks, as evidenced by the current situation with the Whoosh railway.
Furthermore,effective risk management and transparent financial reporting are essential for maintaining investor confidence and ensuring the success of large-scale infrastructure initiatives. A study by McKinsey & Company highlights the importance of robust project governance and proactive cost control measures in mitigating financial risks in infrastructure projects (McKinsey Infrastructure Insights).
The challenges faced by the Whoosh project underscore the broader complexities of large-scale infrastructure development in emerging economies.Factors such as land acquisition difficulties, regulatory hurdles, and fluctuating exchange rates can considerably impact project costs and timelines. Looking ahead, a focus on enduring financing models, public-private partnerships, and enhanced project management practices will be crucial for ensuring the long-term success of Indonesia’s infrastructure ambitions.
Frequently Asked Questions about the Jakarta-Bandung High-Speed Rail
- What is the Whoosh railway? It’s Indonesia’s first high-speed railway,connecting Jakarta and Bandung.
- How much did the Whoosh project cost? The total investment is $7.2 billion (Rp116.54 trillion),including cost overruns.
- Why is KAI reporting a loss on the Whoosh project? Revenue hasn’t yet covered the high investment and operational costs.
- What is PSBI’s role in the Whoosh project? PSBI is the consortium responsible for funding and managing the railway.
- What steps are being taken to address the financial losses? Restructuring of the Investment Management Agency and Antara is underway.
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