Magelang, C. Java. Indonesia is pushing ahead with the feasibility study for a high-speed rail line connecting Jakarta and Surabaya in East Java, with the government stressing that planning must be comprehensive, sustainable, and backed by robust financing, Chief Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono said on Saturday.

Speaking at a Chamber of Commerce and Industry (Kadin) retreat in Magelang, Central Java, Agus said the project’s conceptual framework is being refined to ensure it meets the demands of a large-scale infrastructure investment.

“We continue to improve the concepts that have been developed so far. For such a major project, planning must be truly comprehensive and involve many stakeholders,” he said. “We want the study to be complete and up to date.”

The proposed Jakarta–Surabaya high-speed rail is expected to cut travel time to just 3.5 hours for the 780-kilometer journey, down from the current 11 hours by conventional train. Agus said the project must account for geographical challenges, equitable development along the route, and long-term funding stability.

“Financing must be sufficient and sustainable, and we need time to perfect all of this,” he said, adding that all potential funding sources, including the state budget and alternative financing mechanisms, will be considered carefully.

The rail link is envisioned as a modern mass transit solution that could ease congestion, boost economic connectivity, and spur regional growth along one of the country’s busiest corridors. It follows the 2023 launch of Indonesia’s first high-speed rail --the $7.3 billion Jakarta–Bandung line, known as “Whoosh”-- built in partnership with China. The 142-kilometer Whoosh line connects Jakarta to Bandung in just 45 minutes, compared with up to three hours by car.

However, the Jakarta–Bandung project has left Indonesia with a significant debt burden. The China Development Bank covered 75 percent of the costs through loans, charging a 2 percent annual interest rate on the original portion. A $1.2 billion budget overrun, attributed to pandemic-era restrictions and land acquisition delays, required additional borrowing at a higher 3.4 percent interest rate. Indonesia’s sovereign wealth fund, Danantara, is now working on a debt restructuring plan for Whoosh. 

If completed, the Jakarta–Surabaya route would place Indonesia among a select group of countries with extensive high-speed rail networks. Japan’s Shinkansen, in operation since 1964, is known for its safety record and punctuality, while China’s high-speed rail system, the world’s largest, spans more than 45,000 kilometers.