Megaprojects That Ended In Deadlock?

JAKARTA - September 2015, the government decided not to continue its proposal for fast trains from China and Japan. The main reason is that the government wants this project to be business-to-business (B2B) without guaranteeing debt from the government and without using the State Revenue and Expenditure Budget (APBN). After the initial rejection, the Indonesian government chose the Chinese offer, because it agreed without using the state budget and without government guarantees.

The Chinese company also offers a lower investment value and a faster work period. Now, the 112-million-year Jakarta Fast Train (142 Km) project is in the spotlight and public attention.

According to the Public Policy Observer, Agus Pambagio, who had been asked for views on the feasibility of the Jakarta-Bandung high-speed train, had warned about the feasibility of the construction of the high-speed train. "But Pak Jokowi stated that it was his will. In the end, his party could not refuse." he said.

The 7th President Joko Widodo or Jokowi tested the high-speed train in 2023 (doc the Ministry of Transportation)

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Later, following the statement of the new Minister of Finance, Purbaya Yudhi Sadewo, who refused to pay for his construction and debts with the state budget and entrusted him to Danantara as an investment management institution, the reason was that Danantara had funds from state-owned dividends of up to Rp 80 trillion. Initially, the operation of this train is expected to be able to collect revenue from passengers of at least 31 thousand passengers per day. However, in fact, during the last July holiday period alone, God willing, it will only be filled with 19-23 thousand people per day, so it has not met the target.

So far, 75 percent has been financed through loans from China Development Bank (CDB) or US$ 5.415 billion. With interest per year, from principal debt of 2 percent and interest for cost overruns of 3.4 percent per year, KCIC (a consortium consisting of PT Wika, PT KAI and their Chinese counterparts must bear debts), so far paying US$ 120.9 million per year, it is only for interest.

For The Sake Of Justice And Democracy, When Will Jokowi Be Punished?

Political observer Rocky Gerung said slowly but surely, history provides a way through the Fast Train project, Right. He assessed that at this time there was already an opinion formation about who needed it and should be punished for mistakes in the practice fast train policy.

"There has been something wrong in the last 10 years, so that our democracy is destroyed and we are all poor to this day. And now what BEMs remember from all students in Indonesia, which is currently remembered by only one mother, when Jokowi will be punished. This punishment is not because of revenge or mistakes in making policies. Of course it's okay, but not to raise money, that's the problem," said Rocky.

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan. (Photo: ANTARA)

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Rocky emphasized that this trashsh project will be a 'burning issue' for this nation to start a tradition that in a democracy where the past government made mistakes over a policy, the current government has already made a mistake.

"Pak Prabowo, for the sake of democracy, for the sake of justice and for the sake of equality, ask the authorities to start the examination in thiskahsh scandal. And if anyone asks, am I pro on a high-speed train. Yes, I am pro, because with this there will be a new route that will take someone from Solo to his resting place at Cipinang Prison," he said.

The KPK spokesman, Budi Prasetyo, said that the investigation into the alleged mak-up for the Train project had been carried out since early 2025. This means that the investigation was carried out by the KPK before this case went viral and caused a stir across the country. The KPK responded to the opportunity to summon the Chairman of the Jakarta-Bandung High Speed Rail Committee Luhut Binsar Pandjaitan in investigating the case.

"The investigation into this case has started since the beginning of the year. Regarding the parties who are asked for information, what is the material, we cannot convey it in detail," said KPK spokesman Budi Prasetyo in a written statement in Jakarta, Tuesday, October 28. " said Budi.

According to Budi, the KPK is currently still focusing on investigating the elements of alleged corruption in thefeedingsh project, and has not been able to inform further because the case is still under investigation.

Jokowi Explains!

Former Coordinating Minister for Political, Legal and Security Affairs Mahfud MD assessed that thiskahsh project could also threaten the future and sovereignty of the nation, due to enormous debt. Mahfud MD also mentioned an alleged budget inflation (mark up) on theASH project.

"Because for example we failed to pay, that means China had to take it, but it's impossible to take goods in the middle of the city. Surely he asked for compensation side by side, for example the North Natuna Sea. Because of that, it happened to Sri Lanka. Sri Lanka has also done this. Build a port that can't afford to pay for ports taken until now by China," said Mahfud.

In a video uploaded on October 14, Mahfud stated that the calculation ofPORTsh costs in Indonesia reached 52 million US dollars per kilometer, while in China it was around 17'18 million US dollars, so it is suspected that there was an increase of up to three times. Mahfud requested that the difference in costs be investigated to find out who raised the price and k as the flow of funds.

Former President Joko Widodo revealed the reasons behind the construction of the Jakarta Fast Train "Bandung" while he was still in office. He said the project was born from the need to overcome economic losses due to severe congestion in the Jabodetabek and Bandung areas that have occurred for decades.

"From traffic jams, the state has lost a lot. In Jakarta it is around Rp. 65 trillion per year, and if it is added to Jabodetabek and Bandung it can be more than Rp. 100 trillion," said Jokowi in Solo, Sunday, October 26.

Jokowi explained that the construction of various mass modes of transportation such as KRL, MRT, LRT, Airport Train, and warehousing aims to encourage people to switch from private vehicles to public transportation. Public transportation is not measured from financial benefits, but from social benefits such as reducing emissions, increasing productivity, and time efficiency," he said.

IKN, Political City

Based on Presidential Regulation Number 79 of 2025 concerning the Update of the 2025 Government Work Plan, which was signed on June 30, 2025. The transfer of the central government to IKN was carried out in stages with the final target of making Nusantara the capital city of politics.

The atmosphere of KIPP IKN in Sepaku District, North Penajam Paser Regency, East Kalimantan Province (ANTARAPHOTO/Aditya Nugroho)

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Minister of State Secretary Prasetyo Hadi said the Prabowo administration is committed to continuing the development of IKN. The Gerindra Party politician also explained the reasons for President Prabowo to change the status of IKN to a political capital in the next three years. "So that in 2028 IKN will have central government facilities. It is hoped that buildings and facilities for the House of Representatives, the Supreme Court, the Constitutional Court and the Judicial Commission will be ready to use," Prasetyo Hadi told reporters at the Parliament Complex of the House of Representatives (DPR), some time ago.

He also added that the determination of IKN to become the capital city of politics does not mean separating the center of government and the center of the economy in Indonesia. "Not then is it the capital city of politics or the capital city of the economy," he said.

Prasetyo emphasized that there is no difference in the meaning of IKN being the capital city of the country with IKN as the capital of politics. He ensured that there was no change from the initial purpose of IKN development which was initiated from the era of the 7th President Joko Widodo, where the capital city of Indonesia in Jakarta would be transferred to IKN. If you look at the State Capital Law No. 21 of 2023, the function of the government center is regulated by Article 12 paragraph (1). In the regulation, there is absolutely no mention of the phrase of the political capital.

Professor of government knowledge at the Djohermansyah Djohan Institute of Domestic Administration, the capital of politics has an identical meaning to the nation's capital. Djohan said the two of them both refer to the center of government which is the workplace of the president complete with ministers, legislative institutions, judiciary institutions and other government agencies. "What does it mean by the President to name the Political Capital, this shows he is serious about moving there in managing the country," said Djohan through his written message.