On Monday (2/10/2023), the Indonesian government proudly unveiled Southeast Asia's first high-speed railway, a pivotal undertaking within the region's mass transportation transformation.

Despite reservations arising from its delayed timeline, burgeoning costs, and uncertain economic benefits, President Joko Widodo has underscored the invaluable knowledge and skill transfer acquired by local laborers and train operators during the railway's construction.

Problems and doubts aside, this monumental project marks a significant milestone in Indonesia's infrastructural development. Therefore, let's take a look into what Indonesia aims for by bringing this ambitious project–finally–to fruition.

Behind Indonesia's High-Speed Railways Project

As reported by BBC, this project aligns with Chinese President Xi Jinping's expansive vision to connect Asia, Africa, and Europe via comprehensive land and sea networks. The project encompasses investments in local infrastructures across nations in the regions.

In Indonesia, the "Whoosh" bullet train will link Jakarta with Bandung, a major city in the West Java province. To navigate Indonesia's disaster-prone environment and tropical climate, the trains have been equipped with a safety system capable of responding to earthquakes, floods, and other emergencies.

The project itself was initially estimated at $4.3 billion but experienced a significant cost increase to $7.3 billion. The project's intended start date in 2019 has been postponed due to various challenges, including land acquisition disputes, environmental issues, and the impact of the COVID-19 pandemic.

Transformative Impact on Local Economies

As of now, the 209-meter train accommodates 601 passengers and has operated free of charge for two weeks leading up to its official launch.

Going forward, PT KCIC anticipates one-way fares per passenger to range from IDR 250,000 to IDR 350,000. Notably, the train's route concludes not at Bandung Station, the city's largest railway station, but rather at Padalarang Station, encouraging passengers to take a 20-minute feeder train to downtown Bandung.

Due to this, Deddy Herlambang, the executive director of the Jakarta-based NGO Institute for Transportation Studies, as quoted by Yahoo! Finance, deemed the Jakarta-Bandung high-speed train superfluous. He mentioned the existing array of transportation options between the two cities, such as the Argo Parahyangan intercity train, shuttle buses, and other alternative modes.

His assessment, however, may differ if the bullet train connected Jakarta with Surabaya instead. Conversely, the lead Indonesian analyst at the strategic advisory firm Global Counsel, Dedi Dinarto (BBC, 2023), also notes that the high-speed railway is likely most appealing to business travelers and tourists compared to local citizens.

Importantly, President Joko Widodo's assurance of the operational continuity of Argo Parahyangan underscores the recognition that the high-speed train targets a distinct market segment.

In regard to the train's impact on local economies, Maria Herawati Manik, Country Manager of 99 Group Indonesia, has shared her positive outlook. She contends that areas with enhanced connections to diverse public transportation methods stand to gain increasing mobility and long-term prospects for residential and commercial development.

In the first half of 2023, the demand for housing in the 21 sub-districts traversed by the Jabodebek LRT has surged significantly. The districts of Ciracas, Cipayung, and Cimanggis experienced a remarkable 22 percent spike in housing demand as they are in closest proximity to TMII Station, Kampung Rambutan Station, Ciracas Station, and Harjamukti Station. Forecasts suggest similar conditions will happen after the launch of Jakarta-Bandung high-speed railways.

Furthermore, Maria highlights that housing demand is driven by transit-oriented areas (TOD). The TOD blueprint, with its mix of residential and commercial spaces, reflects a vision for integrated urban development. This vision includes a blend of commercial apartments, low-income housing, landed properties, convention centers, hotels, shopping complexes, warehouses, offices, creative villages, and cultural museums.

The Jakarta-Bandung high-speed railway, especially, boosts demand in Halim, Karawang, Padalarang, and Tegalluar, spanning 14 sub-districts altogether.

The project has led to significant demand increases in the first half of 2023, namely 26.2% in Halim, 26.3 in Padalarang, and an impressive 34.4% in Tegalluar.

A Significant Step Forward

In conclusion, while challenges and skepticism have surrounded the development of Southeast Asia's first high-speed railway, it also represents a significant step forward for both Indonesian infrastructure and the broader Belt and Road initiative.

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