Passengers taking a picture with the Jakarta-Bandung high-speed train 'Whoosh', after the inauguration at the Halim station in Jakarta in October 2023. — AFP
JAKARTA: The Corruption Eradication Commission’s (KPK) probe into alleged corruption in the construction of the Jakarta-Bandung high speed railway Whoosh is proceeding apace after President Prabowo Subianto reassured the public about having "no major problems" with the project's lingering debt.
The preliminary investigation, which began earlier this year, is still ongoing and aims to determine whether any criminal acts of corruption occurred in the project, KPK deputy chairman Johanis Tanak said, adding that investigators were still gathering evidence. “There is no prohibition [from the President] against conducting an investigation,” Johanis told reporters on Wednesday (Nov 5).
“An investigation provides legal certainty. If no evidence is found, the case will be closed. But if indications of corruption emerge, we will inform the President,” he said. “[I am confident] the President will respect the process, as he has emphasised anticorruption in his campaign promises.”
Dubbed as a flagship initiative of former president Joko “Jokowi” Widodo and South-East Asia’s first high speed railway, Whoosh had been under scrutiny even before it began operations in 2023, with critics citing cost overruns, mounting debt and policy U-turns during its construction.
Whoosh was built and is operated by PT Kereta Cepat Indonesia China (KCIC), a joint venture owned by two consortiums from Indonesia and China.
The Indonesian consortium, PT Pilar Sinergi BUMN Indonesia (PSBI), is made up of state-owned enterprises (SOEs), with the largest share belonging to railway operator PT Kereta Api Indonesia (KAI).
The corruption allegation first surfaced when former coordinating political, legal and security affairs minister Mahfud MD said on YouTube that the project’s per-kilometer cost reached US$52 million, far higher than the US$17 million estimated cost for a similar project in China. The total cost for Whoosh was US$7.2 billion.
Antigraft activists have called on the KPK to question Jokowi and senior officials in his administration who were directly involved in the project, including former SOEs ministers Rini Soemarno and Erick Thohir, former transportation minister Budi Karya Sumadi and former coordinating maritime affairs and investment minister Luhut Pandjaitan.
Without naming names, KPK spokesperson Budi Prasetyo said last week that investigators had interrogated several individuals involved in the railway’s development.
The KPK’s pledge to continue the investigation came after Prabowo sought to reassure the public, pledging on Tuesday to take responsibility for Whoosh’s financial woes and urging people not to dwell on the railway’s “costs and benefits” given that the project is a necessary “public service obligation”.
Political analysts said Prabowo’s remarks were more likely aimed at reassuring investors and maintaining confidence in the government’s ability to manage national projects, amid growing scrutiny of the project’s financing and corruption allegations.
“The President’s statement seems aimed at giving an assurance that the high-speed rail project will not face financial problems, which is important for investors. Without it, investors may be deterred by the risks,” analyst Dedi Kurnia Syah said.
The remark, Dedi added, also signaled Prabowo’s intention to project policy continuity and political stability by showing alignment with Jokowi’s legacy instead of distancing himself from the project’s controversies, reflecting the two figures’ “solid relationship”, for now.
Zaenur Rohman from the Gadjah Mada University Centre for Anticorruption Studies, however, warned that Prabowo’s plan to use the state budget to cover Whoosh’s debt posed “legal risk”. He said using public funds to pay off business-to-business debt could expose those authorising the bailout, including the President, to potential corruption charges.
He also criticised Prabowo’s plan to extend the high-speed railway to Banyuwangi in East Java, despite the ongoing controversies, stressing the need for an audit by the Supreme Audit Agency (BPK) to first identify the causes of cost overruns and operational deficits.
“Key figures, such as Jokowi, ministers during his administration, and even the project heads, should also be summoned by the KPK for questioning,” he said. “All documents related to the project, including memorandums of understanding and contracts, must be reviewed to determine whether there was any corrupt intent.”
Amid mounting controversies, Prabowo held meetings this week at the State Palace to discuss the project’s debt, including one on Monday with former transportation minister Ignasius Jonan and current Coordinating Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono, both of whom had previously opposed the project. - The Jakarta Post/ANN
