While construction costs for Indonesia's high-speed rail project ballooned, forcing additional injections from the national budget, Taiwan High Speed Rail moved toward stable operations with Japanese Shinkansen technology at its core. The difference between the two projects is particularly evident in the extent of cost overruns and the resulting financial burden.
Indonesia's rail project was hit by a combination of land acquisition, geological problems and the impact of COVID-19, causing costs to swell far beyond the initial estimate of approximately $6 billion to $7.27 billion. To cover the excess, the government provided additional funding from the national budget. The initial loan carried an interest rate of 2%, but the excess amount was subject to 3.4%, bringing annual interest payments to approximately $121 million and creating a heavy burden. The demand forecast also missed the mark: actual ridership was only around 18,000 passengers per day, compared with the projected 50,000.
PSBI holds a 60% stake in the Whoosh business. It recorded a loss of IDR 4.19 trillion in 2024, followed by a loss of IDR 1.62 trillion in the first half of 2025. Losses absorbed by KAI, PSBI's largest shareholder, reached IDR 2.23 trillion in 2024, while WIKA, which was responsible for construction, was subjected to a trading suspension. In addition, an investigation by the Corruption Eradication Commission and debt restructuring negotiations centered on the Danantara Fund were pursued.
The 1999 Jiji earthquake was a major factor behind the decision to adopt Japanese Shinkansen technology for Taiwan High Speed Rail, whose resilience against earthquakes and typhoons was highly regarded. The rolling stock is the 700T model, based on the 700 Series, while the civil engineering and equipment use a hybrid configuration combining European standards. The project was operated under a private-sector-led build-operate-transfer (BOT) model. Actual performance after opening fell below forecasts, and heavy long-term depreciation costs weighed on the project. Debt reached TWD 457 billion, and there was also a period when net assets fell into negative territory.