Indonesian industry will ‘boom’ along HSR line

Picture-perfect: The Jakarta-Bandung high-speed train serves as a nice backdrop for photos. The project has also modernised mass transportation in Indonesia and is making it more efficient while reducing emissions. — AFP

JAKARTA: The purpose of high-speed rail (HSR) projects like the new Jakarta-Bandung connection is not just passenger transportation but also industrialisation alongside the tracks, according to Wang Yiwei from the China Public Diplomacy Association.

Indonesia’s first HSR, and the first in Asean, is an Indonesian-Chinese joint venture.

The project exceeded its initial timeline and budget, and commercial operations of the service, dubbed Whoosh, are to begin this month.

Analysts have pointed to challenges for Whoosh to operate profitably given the relatively short route of 142km.

Acknowledging such concerns, Wang noted that profitability was not the only purpose of HSR projects.

He cited the first HSR project in China as an example, which only covered 130km between Beijing and Tianjin and did not generate any profit in the beginning, which was why private parties were reluctant to invest, pushing the government to initiate construction.

“However, along the railway, industries boomed, from tourism to real estate. And that made industrialisation China’s comparative advantage,” Wang said.

Since then, China has extended its HSR network to 42,000km, as of the end of last year.

Wang, who is also a director of the Institute of International Affairs at Renmin University of China and served as a diplomat at the Chinese Mission to the European Union from 2008 to 2011, has published studies and books on China’s Belt and Road Initiative (BRI) and delivered a keynote speech on the initiative at a United Nations General Assembly side event.

He expects upcoming BRI projects in Indonesia to focus on the development of special economic zones and industrial parks along the Whoosh tracks.

However, Wang said that HSR development in Indonesia should be gradual.

He suggested the country let the trains run for a year and solve any problems that may come up, before extending the tracks to Surabaya.

President Joko “Jokowi” Widodo inaugurated the Jakarta-Bandung HSR on Oct 2, branding it Whoosh for Waktu Hemat, Operasi Optimal, Sistem Handal (time-saving, optimally operating reliable system). The trains can reach speeds of up to 350kmh.

In his inauguration speech, the President said the Jakarta-Bandung HSR project had modernised mass transportation in Indonesia to make it more efficient while reducing emissions.

Currently, PT Kereta Cepat Indonesia China (KCIC) as the operator of Whoosh had allows people to ride the high-speed train for free.

However, with effect from today, KCIC will charge 300,000 rupiah (US$19.10) for a one-way trip. The price includes a free ticket for the feeder train that connects Padalarang Station and Bandung Station.

According to KCIC corporate secretary Eva Chairunisa, the quoted price is still a promotional fare and ticket pricing will be based on further research and consumer demand.

Deputy State-Owned Enterprises Minister Kartika Wirjoatmodjo said on Oct 3 that the government was still conducting a feasibility study on the extension of the project to either Surabaya or Yogyakarta, including the possibility of involving the same Chinese consortium. — The Jakarta Post/ANN