JAKARTA: The Chinese government has made a statement regarding the debt of the Jakarta-Bandung high-speed rail (HSR) service Whoosh, saying its benefits go beyond key financials.
Chinese Foreign Ministry spokesperson Guo Jiakun said on Monday that the Chinese government was ready to work together with Indonesia to keep facilitating the operation of Whoosh.
“It has to be stressed that, when assessing a high-speed rail service, other than financial numbers and economic yield, the public benefit and comprehensive yield have to be taken into account as well,” said Guo.
He went on to say that Jakarta and Beijing had prioritised the development of the project and “authorities and companies from both countries have tightly coordinated to strongly support” the HSR operation, so that it could “play a bigger role in pushing Indonesia’s economic and social development alongside increasing in the region”.
Guo noted that Whoosh had been running smoothly and safely in its two years of operations, during which 11.7 million passengers had used the service.
“The passenger numbers keep increasing, and economic and social benefits are continuing to be felt.
“It creates jobs for local people and pushes economic growth along its tracks. These benefits have been admitted and welcomed by various parties in Indonesia,” said Guo.
Whoosh is operated by PT Kereta Cepat Indonesia China, a joint venture owned by two consortiums: one from Indonesia and the other from China.
The Indonesian consortium, PT Pilar Sinergi BUMN Indonesia (PSBI), is entirely made up of state-owned enterprises with the largest share belonging to railway operator PT Kereta Api Indonesia.
A cost overrun brought the project’s budget, initially estimated at US$6bil, to US$7.2bil.
Loans from China Development Bank covered 75% of the cost, while the consortiums chipped in for the rest, with PSBI contributing 60% of the capital and Chinese consortium, Beijing Yawan HSR Co Ltd, the other 40%, reflecting their ownership stakes. — The Jakarta Post/ANN
