Indonesia eyes high-speed rail to Surabaya, but China debt barriers loom
With the current US$7.3 billion rail line not projected to break even for 40 years, analysts are urging caution on an extension
Talk of extending the bullet train eastward to Surabaya has circulated since before Whoosh began operations, largely championed by Luhut Binsar Pandjaitan, Widodo’s long-time fixer and the coordinating minister for maritime affairs and investment during his administration.
Now serving as chairman of the National Economic Council, a government advisory body, Luhut reaffirmed during a trip to Beijing on May 20-22 that the rail extension remained on the agenda – though he conceded that Indonesian bureaucracy had stalled progress.
“The issue is actually on our side because we haven’t finished drafting the regulation yet. It’s that simple. But once it’s done, we’ll start talking about a joint study [with China],” Luhut told Indonesia’s state-owned Antara news agency.