Indonesia is emerging as a significant player in the global economy, with its high-speed rail project now in motion. Unlike China or Japan, Indonesia’s focus is on its own high-speed train, which began operations in September 2023, reaching speeds of 350 Km per hour. This is in contrast to India’s bullet train, though started almost at the same time, which is expected to debut between 2028 and 2029.
Indonesia’s success in this domain has been aided by China, while India’s project receives support from Japan. Under President Joko Widodo’s leadership, Indonesia has experienced considerable economic growth and is now one of the world’s fastest-growing economies. The key question for Indonesia is whether it can sustain this momentum and transition from a developing to a developed nation.
Indian High – Speed Rail Project
Current Status and Delays
The Indian bullet train project, launched in September 2017, has faced significant delays. Initially planned for inauguration on August 15, 2022, the project still lacks a confirmed launch date as of 2024. Recent information from the National High-Speed Rail Corporation Limited (NHSRCL) indicates uncertainty about the completion date due to pending work tenders. As of January 2024, land acquisition in Maharashtra and Gujarat is complete, and 157 km of the 508 km corridor’s viaduct has been constructed.
Historical Context
The idea for bullet trains in India first emerged in the 2008 Railway Budget, which proposed six high-speed rail corridors, including the Pune-Mumbai-Ahmedabad route. An agreement with France was signed in February 2013 for technical and financial support. The project was later revised, canceling the Mumbai-Pune corridor due to high costs and environmental issues. Japan was introduced into the project in September 2013, offering a favorable deal and a $100 billion proposal for the Delhi-Mumbai Industrial Corridor.
Japan provided a soft loan of 88,000 crores with a 0.1% interest rate, with repayment starting 15 years after completion. Despite the foundation stone being laid in September 2017, the project has faced ongoing issues, including delays in land acquisition and environmental clearances.
Indonesian High-Speed Rail Project
Development and Funding
Indonesia’s high-speed rail corridor connecting Jakarta and Surabaya began with Japanese involvement in 2008. However, after a 2014 government change, Indonesia shifted to a deal with China, which funded 75% of the project. China, with its extensive high-speed rail network, aims to expand further by 2035. The Indonesian project, initially set for completion by 2023, has faced delays and rising costs, now estimated at around $5.1 billion.
Comparative Analysis and Challenges
While Indonesia’s high-speed rail project, supported by China, is progressing and set for earlier completion, India’s project faces delays and increased costs. Issues such as bureaucratic hurdles, red tape, land acquisition problems, and political opposition have impacted India’s timeline. Japan’s investment of $38 billion from 2000 to 2020, with an additional $42 billion pledged, has been met with frustration due to ongoing delays.
Indonesia: The Rising Economic Power
Indonesia is projected to become the world’s fourth-largest economy within a few decades. President Widodo’s administration has focused on economic growth, infrastructure development, and nickel production, positioning Indonesia as a leading global player in the nickel market. Future investments in nickel processing and electric vehicle production by companies like LG Energy Solutions and Hyundai are set to further boost the economy.
Challenges and Future Outlook
Despite significant progress, Indonesia faces challenges such as a cooling commodity boom and reliance on raw material exports. Balancing relationships with China and the U.S., managing economic shifts, and transitioning from a developing to a developed nation remain crucial. As Indonesia continues its rapid ascent, it is expected to become one of the world’s top economies, with high hopes for achieving its ambitious goals. As Indonesia continues its rapid ascent, the expectation is high that it will become one of the world’s top five economies within a few years. With a new president on the horizon, there is hope that the country’s ambitious goals will turn into reality. Despite its advantages, Indonesia faces ongoing challenges, but its trajectory remains promising.