Скачать или смотреть Here's How Indonesia Falls Into China Debt Trap

The Economist Yusuf Wibisono claims Indonesia has tangoed straight into China's debt trap. Imagine this as a high-stakes poker game, where the government has seemingly wagered its financial stability on a high-speed train project, the Jakarta-Bandung high-speed train (KCJB). But this isn't your typical poker night; it's a geopolitical gamble with consequences that ripple through the economy.

The train project, once heralded as a beacon of progress, has become the protagonist in a financial thriller. Government compliance with the wishes of the Chinese party sounds more like a script from a spy movie than an infrastructure venture.

The Jakarta-Bandung high-speed train project, initially set to be Indonesia's economic magnum opus, has taken a detour so sharp it could give you financial whiplash. It's the 'Fast and Furious' of infrastructure projects, but instead of Vin Diesel, we've got budget overruns and unexpected twists.

The project strayed further from the original plan than a GPS with a vendetta. The dream team of 60% Indonesian state-owned enterprises and 40% led by a China Railway consortium, each promising to cover any cost overruns, found themselves improvising like jazz musicians in a symphony.

But the drama doesn't end there. a staggering US$1.6 billion cost overrun, bringing the total cost to a whopping US$6.73 billion. That's higher than the Japanese offer of US$6.2 billion. Talk about plot twists that even M. Night Shyamalan couldn't have scripted.

Now, imagine a whopping US$1.6 billion cost overrun. The grand total? A staggering US$6.73 billion, surpassing even the Japanese offer. It's a financial meringue with too many layers, leaving us to wonder if the original recipe was lost in translation.

China insists on multilateral creditors' involvement in this financial drama. It's not just a solo act; they want the Avengers of debt relief to assemble. But, skeptics question whether China and other creditors are reading from the same script. Are we in for a financial blockbuster, or will the plot thicken into a sequel?

China's current economic and financial saga might explain its reluctance for debt relief, fearing a domestic moral hazard. Yet, history teaches us that lessons from past debt crises might be the key to a standing ovation. Will China take a bow and provide upfront debt treatment, or are we in for an encore of financial suspense?