Indonesia’s plan to build mega railway with China and Japan raises debt trap fears
- The Indonesian government wants to include China in another multibillion-dollar railway initially only earmarked for Japan
- But the proposed Jakarta-Bandung-Surabaya railway project could lead to a debt trap, analysts say, while Indonesia’s ties with long-time investor Japan could also weaken
Indonesia’s plan to involve Japan and China to build two separate routes for the same railway project has raised debt-trap fears and concerns that Jakarta’s ties with long-time investor Tokyo could weaken, analysts say.
The project to link the capital to Bandung, part of Beijing’s Belt and Road Initiative infrastructure programme, also faces delays due to land acquisitions and other issues.
The Indonesian government in January doubled down on its intention to include China in the Surabaya project by expanding the line.
“It is our hope that the Jakarta-Bandung high-speed railway can be extended into a Jakarta-Bandung-Surabaya high-speed railway,” said Luhut Pandjaitan, the coordinating minister for maritime affairs and investment, who is also in charge of the country’s ties with China. “President Joko Widodo has expressed [his wish] to President Xi Jinping so that China can participate in that project.”