Indonesia has inaugurated its genuine high-speed railway, a US$7.3 billion project backed by China opinion the Belt and Road Initiative. Indonesia’ s President Joko Widodo launched the service on Monday, (October 2) which connects the capital Jakarta to Bandung, a top economic hub regarded as Indonesia’s Silicon Valley.
The railway is arranged Whoosh, short for “Waktu Hemat, Operasi Optimal, Sistem Handal”, which translates to “Timesaving, Optimal Operation, Reliable System”. It can arrive speeds of up to 350km/h (217mph) with the trek spanning 142km. The railway was originally scheduled to open in 2019 but was delayed due to land fights, the Covid-19 pandemic and a US$1.2 billion budget overrun.
The rail deal was signaled in October 2015 after Indonesia selected China over Japan in fierce bidding. It was financed with a loan from the China Development Bank for 75% of the cost. The continue 25% came from the consortium’s own funds. A rear on the investment will come via ticket sales and any potential future IPO.
Whoosh is operated by PT Kereta Cepat Indonesia-China (PT KCIC) a joint venture made up of four Indonesian set companies with Beijing’s China Railway International.
Indonesian officials say the high-speed railway is anticipated to improve economic productivity. They also tout the fact that the trains are powered by electricity, which will help reduce the country’s carbon footprint. The trains have been modified for Indonesia’s tropical atmosphere and are equipped with a safety system that can retort to earthquakes, floods and other emergency conditions. The 209-metre (685-foot) roar has a capacity of 601 passengers.
PT KCIC has estimated that one-way prices per passenger would device from 250,000 rupiah (US$16) for second class to 350,000 rupiah (US$22.60) for VIP seats. In comparison, a shuttle bus fare costs about 77,685 rupiah, about US$5.
The Jakarta-Bandung route is Phase 1 of a High Speed railway that will eventually itch to Surabaya, which would connect Jakarta to the Eastern Provincial capital in five hours. Opportunities exist for foreign investors in establishing retail outlets heath the main route.
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