This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Kereta cepat ke IKN beri manfaat ke ekonomi RI
8 April 2024
By Ichsan Amin
Jakarta, ID – The government is supportive of Brunergy Utama Sdn Bhd's plan to build a high-speed railway connecting Malaysia, Brunei Darussalam, and Indonesia, which includes Nusantara Capital City (IKN).
Indonesian Presidential Staff Head Moeldoko said that the plan would significantly impact public mobility.
“However, each border maintains its sovereignty. We welcome [the plan] as it enhances the movement of passengers and goods,” Moeldoko said as quoted by Antara in Jakarta on Friday (5/4/2024).
According to Moeldoko, sovereignty will be intertwined with bilateral and multilateral relationships when addressing various issues in border areas.
Personally, Moeldoko reckoned that the high-speed railway was a great plan to connect the transportation sector of passengers and goods from Indonesia to Brunei Darussalam and the other bordering countries.
“Personally, I believe it is fantastic as it improves connectivity and fosters closer ties between the countries. This means goods from Indonesia can swiftly reach Malaysia and even Brunei Darussalam, albeit via Malaysia initially. Additionally, it will streamline the movement of passengers and goods,” he revealed.
On the other hand, Moeldoko mentioned that land transportation in border areas presented a constant dilemma. “It can facilitate the smuggling of weapons, drugs, and people,” he stated.
In addition to the downsides, Moeldoko pointed out that a high-speed railway linking the three countries, Brunei Darussalam, Malaysia, and Indonesia, could greatly benefit the economy and streamline the supply chain, thereby strengthening existing international relations.
Added value
Meanwhile, Railways Director General of the Transportation Ministry Risal Wasal admittedly has not received any information about a company from Brunei Darussalam proposing to build a high-speed railway across Indonesia in Kalimantan.
However, Risal revealed that the plan has added value and could facilitate the accessibility of passengers and goods if realised. “However, there is no study or proposal offered. Is it possible? Yes, as long as there are investors. There are railways in IKN, such as the airport train and the freight train in Kalimantan,” he stated.
The government has constructed a high-speed railway connecting Jakarta-Bandung with support from domestic state-owned enterprises (SOEs) and a railway company from China. PT KCIC President Director Dwiyana Slamet Riadi said that the government was experienced in managing high-speed railways with the second fastest in the world after China.
“If the company from Brunei Darussalam wishes to collaborate, we will gladly embrace the opportunity as we are not only willing but also experienced in managing high-speed railways. Furthermore, following the operation of our high-speed railway, numerous neighbouring countries have visited to conduct comparative studies on managing such systems,” he said.
He added that efficient mass transportation construction will always benefit the people. “Therefore, if there is an opportunity that mutually benefits both countries, especially when one of them already has experience, we will certainly welcome it due to its substantial potential,” he added.
The company from Brunei Darussalam, Brunergy Utama Sdn Bhd, announced that the proposal to develop the first high-speed railway in Kalimantan would connect Indonesia and Malaysia in Kalimantan, encompassing IKN. Brunergy Utama is a company engaged in the oil and gas sector, which is currently expanding to the infrastructure sector.
Meanwhile, the high-speed railway in Indonesia known as Whoosh has been inaugurated on 2 October 2023 by Indonesian President Joko Widodo. The high-speed railway called Whoosh that is the first high-speed railway in Indonesia and Southeast Asia connects Jakarta and Bandung with three stations, namely Halim Station, Padalarang Station, and Tegalluar Station.
The inauguration marks the completion of the construction of the high-speed railway project in Indonesia and introduces the name of the high-speed railway, Whoosh.
Whoosh was designated as a national strategic project (PSN) under Presidential Regulation Number 3 of 2016. Throughout its development, KCIC operates independently, without financial assistance from the state budget (APBN) or any guarantee from the Indonesian government. The construction of Whoosh is funded primarily through a loan from the China Development Bank (75%), with the remaining 25% being sourced from shareholder investments. These shareholders include PT Pilar Sinergi BUMN Indonesia (PSBI) (60%) and Beijing Yawan HSR Co. Ltd. (40%).
The shareholder composition through PSBI is PT Kereta Api Indonesia (Persero) 51.37%, PT Wijaya Karya (Persero) Tbk 39.12%, PT Perkebunan Nusantara VIII 8.30%, and PT asa Marga (Persero) Tbk 1.21%. Meanwhile, the shareholder composition through Beijing Yawan HSR Co. Ltd is CREC 42.88%, Sinohydro 30%, CRRC 12%, CRSC 10.12%, and CRIC 5%.
