Jakarta. State railway operator Kereta Api Indonesia (KAI) has acknowledged that the Jakarta-Bandung high-speed rail project, known as Whoosh, faces mounting financial strain that its chief described as a potential “time bomb.”

The project is managed by Kereta Cepat Indonesia–China (KCIC), a joint venture considered a flagship initiative of former president Joko Widodo as the first high-speed railway in Southeast Asia.

Speaking at a parliamentary hearing with Commission VI on Wednesday, KAI president director Bobby Rasyidin said he had only recently discovered the extent of financial and operational problems at both KAI and KCIC after assuming his post.

“We are confident that within a week, we can fully understand the challenges inside KAI. We are also studying KCIC’s issues, which, as has been said, indeed resemble a time bomb,” Bobby told lawmakers.

KCIC is 60 percent owned by Pilar Sinergi BUMN Indonesia (PSBI), a consortium of four state-owned firms, with the remaining 40 percent held by five Chinese companies. Within PSBI, KAI holds the largest stake at 58.53 percent, making it the biggest bearer of losses.

Rising Costs and Debt
While the Whoosh service has drawn significant public attention as Indonesia’s first bullet train since its opening to the public in October 2023, ridership growth and ticket revenues have yet to catch up with the project’s hefty operating and financing costs.

KCIC reported a Rp 1.6 trillion ($100 million) loss in the first half of 2025, of which KAI must shoulder Rp 951.48 billion. The figure was an improvement from Rp 2.4 trillion in losses during the same period in 2024.

Throughout 2024, PSBI’s total losses amounted to Rp 4.2 trillion, with KAI absorbing Rp 2.23 trillion. The remainder was borne by fellow state firms Wijaya Karya, Jasa Marga, and Perkebunan Nusantara VIII.

Bobby said KAI would coordinate with Danantara -- Indonesia’s sovereign wealth fund -- to explore solutions to KCIC’s financial difficulties.

The Whoosh project, launched in 2016, has been financed largely through loans from the China Development Bank. Its budget has ballooned to $7.2 billion, well above initial estimates, due to repeated cost overruns.

The Chinese consortium in KCIC includes China Railway International Co. Ltd., China Railway Group Ltd., Sinohydro Corporation Ltd., CRRC Corp Ltd., and China Railway Signal and Communication Corp.

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