While it could improve overall economic and business productivity, those benefits may be overrun by Jakarta's soaring debt burden as project costs continue to mount.
The 142-kilometre train linking Indonesia's capital to Bandung is expected to move at 350 kilometers per hour, driven by electricity with no direct carbon emissions expected during operations.
However, escalating costs of the project could push up Indonesia's government debt and overshadow any short-term economic gains.
Initially, the train was to be financed by PT Kereta Cepat Indonesia China — a consortium of companies from China and Indonesia tasked with building the rail project.
In that scenario, money spent on the train would have been better spent on alternative investments like irrigation projects, he said.
Persons:
Joko Widodo, Arief Anshory Yusuf, Jokowi, Sri Lanka's, Mao Ning, Mao, Yusuf
Organizations:
Bloomberg, Getty, Initiative, Indonesian, Bandung's Padjadjaran University, Australian National University, PT Kereta, Indonesia China —, KCIC, China Development Bank, Reuters, of Economic, Law Studies, Nurphoto, CNBC
Locations:
Indonesia, Jakarta, Bandung, Southeast Asia, Indonesian, Surabaya, Japan, Indonesia China, China, Entebbe, Beijing, IDR