Solo, C. Java. Former Indonesian President Joko “Jokowi” Widodo defended the controversial Jakarta–Bandung high-speed train project on Monday, saying the $7.3 billion infrastructure investment was designed to tackle chronic traffic congestion and deliver long-term benefits rather than financial profits.

Speaking in Solo, Central Java, Jokowi, said the project, officially known as Whoosh, was intended to shift commuters from private vehicles to public transport in Greater Jakarta and Bandung, where traffic jams have plagued urban life for decades. The train was among the major infrastructure legacies of Jokowi, who launched the project in October 2023.

“Jakarta’s congestion has been severe for 20 to 30 years, and it costs the city around Rp 65 trillion ($4 billion) a year in losses,” Jokowi said. “If we include Greater Jakarta and Bandung, the total economic loss exceeds Rp 100 trillion annually.”

To address that, he said, the government developed multiple modes of public transport, from commuter rail (KRL) and airport trains to MRT, LRT, and now high-speed rail, with the goal of reducing economic losses and improving quality of life.

“Public transport is not meant to generate profit,” Jokowi said. “It’s a public service. The return is social, reduced emissions, higher productivity, cleaner air, shorter travel times, and new economic growth centers.”

He added that Whoosh had already sparked economic activity around its stations, creating new small businesses and raising property values. “Tourism in Bandung is improving, local businesses are growing, and property prices are rising. That’s the social benefit of mass transport. Subsidies for it are investments, not losses,” Jokowi said.

His comments came amid growing questions over the project’s debt structure and financial viability. Indonesia is currently repaying loans to China’s state-owned China Development Bank (CDB), which financed 75 percent of the project. The 40-year loan carried a 2 percent interest rate on the principal, later rising to 3.4 percent due to cost overruns caused by pandemic delays and land acquisition disputes. Presidential economic advisor Luhut Binsar Pandjaitan recently said Beijing had said yes to refinancing the loans payable over 60 years. Luhut used to lead the bullet train committee between 2021 and 2023.

The Kereta Cepat Indonesia China (KCIC) consortium operates Whoosh. It is 60 percent owned by Pilar Sinergi BUMN Indonesia (PSBI), a partnership of four Indonesian state-owned companies led by railway operator Kereta Api Indonesia (KAI), with the remaining 40 percent held by Chinese partners.

KAI, which bears the largest share of the debt burden, must pay around Rp 2 trillion annually in interest to China, exceeding the project’s projected yearly revenue of Rp 1.5 trillion.

Former chief security affairs minister in Jokowi's administration, Mahfud MD, has been among the most vocal critics, arguing that Indonesia could have avoided higher borrowing costs if it had accepted Japan’s earlier loan offer at 0.1 percent interest instead of China’s. 

Despite the financial challenges, Jokowi framed the project as a long-term investment in public welfare and national modernization. “The benefits cannot be measured in short-term profits,” he said. “They are measured by how much better our cities, economy, and environment become.”