Indonesia eyes China for massive 2,772km railway project – with caution

Indonesia is contemplating Chinese investment for the construction of a vast 2,772 km railway network in Kalimantan, a resource-rich region in the country. This comes after the completion of Indonesia's first high-speed railway line between Jakarta and Bandung. However, experts caution that any future commercial agreements with China are likely to be negotiated cautiously due to the financial struggles faced by the high-speed line and the delays in a proposed underground metro project in Bali, a popular tourist destination.

The Indonesian Transportation Minister, Dudy Purwagandhi, revealed that both China and Russia have shown interest in the Trans-Kalimantan railway project. Siwage Dharma Negara, a senior fellow at the ISEAS - Yusof Ishak Institute in Singapore, believes that China can provide Indonesia with a complete railway ecosystem, including financing, engineering expertise, technology, and experienced personnel.

The proposed Trans-Kalimantan railway network aims to connect various parts of the region, which is home to Nusantara, the planned new capital of Indonesia. However, analysts and experts express concerns about the potential risks and challenges associated with such a massive infrastructure project, especially given the financial troubles faced by China's high-speed railway project, "Whoosh," in Indonesia.

Beijing, the capital of China, has recently shifted its approach to international infrastructure financing, moving away from large-scale projects and focusing on smaller ventures. This change might impact China's involvement in the Kalimantan railway project. Meanwhile, Bali has abandoned plans for a US$20 billion underground metro system, opting instead for an electric autonomous rail rapid transit system.