KAI Chief Warns Jakarta–Bandung High-Speed Rail is a “Time Bomb” Due to Mounting Debt
Jakarta, Indonesia – The WHOOSH Jakarta-Bandung high-speed rail project is saddling state-owned railway operator PT KAI (persero) with crippling debt, now exceeding Rp 116 trillion (approximately $7.3 billion USD), according to the company’s President Director Bobby Rasyidin. Rasyidin publicly described the project as a “time bomb” for KAI during a joint hearing with the House of Representatives Commission VI on Wednesday, August 20, 2025.
The revelation underscores long-standing financial concerns surrounding the ambitious infrastructure project, initially estimated to cost Rp 56 trillion for the 133-kilometer line and train procurement. The debt burden is overwhelming KAI and the consortium of state-owned enterprises involved, prompting the company to seek discussions with the Daya anggara Nusantara Investment Management Agency (BPI) to address the financial strain.
A feasibility study for the high-speed rail was conducted in two phases: the first, from january 28, 2014, to April 2015, focused on basic planning, while the second, from April 2015 to December 2015, detailed construction cost calculations. Despite the initial projections, the project’s financial woes have escalated, raising questions about its long-term viability and impact on KAI’s overall financial health.
“We will coordinate with and between KCIC issues, especially we also investigate. This is a time bomb,” Rasyidin stated to the commission.