How is the progress of the Jakarta-Surabaya High-Speed Train Project?

(1) Why does Indonesia need a high-speed train project?

(2) How has the Jakarta-Bandung fast train performed so far?

(3) Which route will the Jakarta-Surabaya high-speed train project take?

(4) Where does the funding for the Jakarta-Surabaya high-speed train project come from?

Fast trains are becoming the preferred mode of transportation besides airplanes for long-distance travel. In addition to speed, comfort and punctuality are the reasons why some people choose to take fast trains. Not only that, choosing fast trains is also said to be more environmentally friendly than airplanes or cars that produce exhaust fumes.

Several developed countries, including in Asia, have long operated high-speed trains as an important mode of transportation in their countries. Japan, for example, which is known for having the Shinkansen or bullet train, has been operating it since 1964. This train has a speed of up to 320 kilometers per hour.

In addition to Japan, there is also China which has the longest high-speed train network in the world. In fact, China's high-speed trains run at speeds of up to 350 kilometers per hour. On some tracks, the maximum speed is said to reach 400 kilometers per hour.

South Korea and Taiwan are other Asian countries that have developed high-speed trains. Indonesia then followed suit by operating Woosh connecting Jakarta and Bandung since October 2023. Woosh has a 142.3-kilometer track serving four stations. The maximum speed of this train is 350 kilometers per hour.

After waiting 15 years since it was first initiated in 2008, Indonesia finally felt the presence of a high-speed train service in October 2023. The arrival of this high-tech transportation service was enthusiastically welcomed by most people. However, there are still many who doubt the effectiveness and operational readiness of this sophisticated transportation mode.

In addition to being the first and only in the surrounding area, the presence of the fast train also makes Indonesia part of a handful of countries in the world that have this sophisticated transportation service. Citing data from the International Union of Railways (UIC), until 2022 there are only 20 countries that have fast train services. This number only covers 10.3 percent of the total 195 countries in the world recognized by the UN.

Citing information from the PT Kereta Cepat Indonesia China (KCIC) page as the manager of Woosh, the presence of a fast train in a country can improve the tourism industry and economy, especially in the areas it passes through. This also happened in China because the increase in tourists has been felt since the fast train was operated in the region.

Travel time is also a consideration for people to use the fast train. Of course there are still other considerations, such as ticket prices, punctuality, and the availability of connecting transportation modes at the stations that are stops for the fast train.

The Whoosh train reportedly still cannot reach the target of 29,000 passengers per day. During its year of operation, the train has managed to transport 5.8 million passengers. This figure is considered less than ideal because it has not been able to attract commuter workers.

In 2023, Whoosh carried 1.1 million passengers, then from the beginning of this year until October 2024, it recorded 4.65 million passengers. The number of daily passengers continues to increase from around 9,000 passengers in October 2023 to 18,000-22,000 passengers in October 2024.

The peak passenger movement occurred on July 5, 2024, carrying 24,132 passengers per day, up 12 percent compared to the peak transportation in 2023 which occurred on November 19, 2023, which was recorded as carrying 21,537 passengers.

General Manager Corporate Secretary PT KCIC Eva Chairunisa in writing through a press release received in Jakarta, Friday (10/18/2024), said that Woosh occupancy is well maintained. The occupancy rate ranges from 70-80 percent in the normal season (low season) and 80-100 percent in the peak season (peak season).

Not only the Jakarta-Bandung line, the government is currently reviewing the expansion of the high-speed train line in Java, especially connecting Jakarta with Surabaya. The hope is that this project can reduce the burden on road transportation, as well as aviation emissions.

The extension of the Jakarta-Surabaya high-speed train has been written in the network development program in the Decree of the Minister of Transportation Number KM 296 of 2020 concerning the National Railway Master Plan. At the same time, PT KCIC is preparing a feasibility pre-study for the potential extension of the high-speed train to Surabaya.

Based on the results of PT KCIC's study, several alternative plans for extension routes have been prepared with continuing routes from Tegalluar, Bandung, to Surabaya. There are at least three routes that have been considered, namely the southern route, the central route, and the northern route.

First, the southern route of Bandung-Surabaya via Kroya and Yogyakarta. The distance is 629.5 km with 13 stations that can be reached in 180 minutes. Second, the central route of Bandung-Surabaya via Cirebon and Purwokerto. The distance is 679.2 km through 15 stations with a travel time of 193 minutes. Third, the northern route from Bandung to Surabaya via Cirebon and Semarang with a length of 642 km passing 14 stations. The travel time is 184 minutes.

The latest recommendation from PT KCIC consultants, the southern line will be considered as the main option. The consideration is that the travel time of the Jakarta-Surabaya train service can be cut from 10.46 hours to 3 hours.

In terms of capital, the business to business (B2B) scheme for the construction of the Jakarta to Surabaya high-speed train is very high risk for investors. As a result, KCIC is studying the government and business entity cooperation (PPP) or KPBU scheme so that there is a sharing of risk between investors and the government.

Remember, looking at the Jakarta-Bandung high-speed rail project, the project cost has ballooned by around 1.7 billion US dollars or Rp27.7 trillion with an exchange rate of Rp16,277 per US dollar. This is inseparable from a number of issues, including a decrease in the projected number of passengers, land acquisition, and an increase in the cost of fulfilling the power supply.

The Jakarta-Bandung high-speed rail project also has an impact on the financial performance of PT Wijaya Karya (Persero) Tbk, a state-owned construction company affected by the project. As long as it is not profitable, this project will continue to burden the finances of the companies involved. Referring to Wijaya's financial report until the end of the third quarter of 2024, the company's total consolidated debt was recorded at IDR 55.7 trillion. This value covers 83.5 percent of the company's total assets which reached IDR 66.6 trillion.

Based on the feasibility test calculations presented by PT Kereta Api Indonesia (Persero) in a hearing with Commission VI of the House of Representatives in late 2023, the new high-speed rail project will only return on investment in 38 years. That is assuming the number of passengers is consistently at 30,000 passengers per day.