Prabowo Proposes 1,000km Extension for Whoosh High-Speed Rail

Indonesia’s President Prabowo Subianto has announced plans to extend the Whoosh high-speed rail (HSR) project by approximately 1,000 kilometers, reaching the eastern city of Banyuwangi. This proposal comes after Surabaya was previously designated as the project’s endpoint. Speaking to the media on November 4, 2023, during the inauguration of the new Tanah Abang Station in Central Jakarta, Prabowo expressed confidence in Indonesia’s ability to manage the financial implications of the project.

Prabowo emphasized that the Whoosh project should not be solely evaluated based on its financial losses. He highlighted the social benefits it brings, such as reducing travel time and air pollution. “I will take responsibility for this issue. Hence, there’s no need for commotion because we are strong enough to handle it,” he stated, as reported by state news agency Antara.

The Whoosh began operations in October 2023, covering a 142-kilometer route between Jakarta and Bandung in just 45 minutes. This $7.3 billion initiative was largely financed through a $5.4 billion loan from the China Development Bank, which accounted for about 75 percent of the total cost. Given the distances involved, the proposed extension would connect Banyuwangi, located 300 kilometers east of Surabaya, potentially expanding the rail line to around 1,000 kilometers in total.

Financial Concerns and Government Responsibility

Despite ongoing concerns regarding Whoosh’s financial viability, which has seen significant losses, Prabowo reassured the public about Indonesia’s capacity to manage the project. He mentioned the annual interest expense of Rp1.2 trillion (roughly $72 million) as manageable, attributing the railway system’s value to its role in alleviating traffic congestion and enhancing air quality.

The joint venture responsible for operating Whoosh is predominantly owned by the Indonesian state enterprises group, PT Pilar Sinergi BUMN Indonesia, with Kereta Api Indonesia (KAI) holding the largest stake. In its unaudited financial report for the first half of 2025, PT Pilar Sinergi reported losses of up to Rp4.195 trillion (approximately $251.3 million) for 2024, with continued losses of Rp1.625 trillion in the first seven months of this year.

In response to the ongoing financial challenges, Finance Minister Purbaya Yudhi Sadewa has ruled out state budget spending to service the Whoosh debt, stating that the state-owned enterprises managing the project fall under the oversight of the sovereign wealth fund Danantara. Nonetheless, Prabowo indicated that if corruption is effectively addressed, sufficient funds would be available to cover Whoosh’s debts, insisting that “the people’s money cannot be stolen.” He expressed a commitment to ensuring public services are prioritized.

Investigations and Cost Concerns

On October 14, 2023, former Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD raised concerns regarding the high construction costs of the Whoosh project, claiming that the cost per kilometer reached $52 million, significantly higher than the $17 million to $18 million per kilometer typically seen in China. He attributed this discrepancy to a contract transfer from Japan to China between 2015 and 2016, which increased the loan interest rate from 0.1 percent to 3.4 percent, thereby exacerbating the financing burden.

Mahfud called on the Indonesian Corruption Eradication Commission (KPK) to investigate the matter further. The KPK has begun preliminary investigations into the Whoosh project, collecting data since early 2025. In their response, the KPK has requested Mahfud to provide any evidence he might possess regarding the alleged financial irregularities.

As discussions continue regarding the future of the Whoosh high-speed rail, the Indonesian government is exploring restructuring options, including potential “burden-sharing” arrangements with stakeholders involved in the project. Minister Agus Harimurti Yudhoyono has indicated that the government is in negotiations with Chinese partners regarding debt restructuring. Prabowo remains optimistic about the project, asserting that Indonesia’s financial capacity will allow for the continued operation of Whoosh without burdening the state budget.