Indonesia’s first high-speed railway, appropriately named “Whoosh” (which stands for “Waktu Hemat, Operasi Optimal, Sistem Handal” which translates to “Timesaving, Optimal Operation, Reliable System”) has just been inaugurated last week, October 2nd, funded by China as part of their Belt and Road Initiative. The railway, which spans 88 miles and can reach speeds of 217 miles per hour, connects two of the most important Indonesian cities, the capital Jakarta, and Bandung, the economic hub of the country. This railway has been anticipated for quite a while, it was supposed to be opened in 2019, but was pushed off due to land disputes, the pandemic, and an over billion-dollar budget overspend. A one-way ticket is estimated to cost around 250,000-350,000 Indonesian rupiah ($16-22), while a normal shuttle bus fare is around 77,685 IDR ($5).
The development of this high-speed rail shows great signs in the technological future of Indonesia, and is another step forward in China’s Belt and Road Initiative, a positive or negative depending on the perspective. This new development tracks with Indonesia’s recent history of economic growth after their economic crisis in 1998. Though looking in at “Whoosh” from the outside may lead to thoughts of technological grandeur, the reality might not be all sunshine, rainbows and convenience. The targeted consumers of this railway are tourists, tech workers, and businessmen, as it is connecting the capital to Indonesia’s “Silicon Valley” after all. So what about the average citizen, would this innovative transportation mean much to them? Probably not, or even a potentially negative effect. The average salary in Indonesia is 146 million Indonesian rupiah ($9,330) a year, about 12 million IDR ($767) a month. That would make a single one-way ticket 1/40th of their monthly salary. Though that doesn’t seem like a lot, for comparison, the average American has a monthly salary of $4,600, so 1/40th of that salary would be $115. It is still a significant amount of money for one ticket, compared to the much cheaper shuttle buses, which would only cost 1/150th of their monthly salary. Even for those living in the cities of Jakarta and Bandung, whose monthly salaries are 13.4-13.8 million IDR ($856-882), that’s still 1/45th of their monthly salaries.
If the railway is just unaffordable for the average citizen, how could its existence negatively affect them? Well, the project has gone over budget, by a significant amount. Though Indonesia’s economy has been growing, the pandemic did strain the economy, and the massive cost of this project could mean damage to their public finances and state funds. The railway was also funded by Chinese state-owned firms, and if they demand for their loans to be paid, that could cause economic damage to Indonesia. This has resulted in a looming problem: will there be enough citizens willing to pay for this railway to be able to break even on the cost put into it? If not, will Indonesia face a possible economic crisis, similar to 1998? Only time will tell how “Whoosh” will affect Indonesia at large.
-Anna Pesti
Main Source:
https://www.bbc.com/news/world-asia-66979810
Other Sources:
https://www.timedoctor.com/blog/average-salary-in-indonesia/
https://www.bloomberg.com/news/articles/2023-10-02/indonesia-starts-southeast-asia-s-first-high-speed-rail-operations#xj4y7vzkg