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All Journal Educenter: Jurnal Ilmiah Pendidikan EDUCENTER JURNAL PENDIDIKAN
Loupias, Henry H.
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Economics, Econometrics & Finance Education Health Professions

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Journal : Educenter: Jurnal Ilmiah Pendidikan

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China's high-speed rail project as a debt trap? lessons learned from Sri Lanka's bankruptcy situation Dewantara, Bachtiar; Pawar, Avinash; Ramdhany, Muhamad Arief; Fathulliansyah, Noor; Loupias, Henry H.
Educenter : Jurnal Ilmiah Pendidikan Vol. 4 No. 1 (2025): Educenter: Jurnal Ilmiah Pendidikan
Publisher : ARKA INSTITUTE

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55904/educenter.v4i1.1673

Abstract

Speed Rail (KCIC) project, developed under China’s Belt and Road Initiative (BRI). The research addresses the urgency of assessing whether large-scale infrastructure projects financed through bilateral loans risk creating long-term debt dependency, drawing lessons from Sri Lanka’s Hambantota Port case. The objectives are to evaluate the potential of the KCIC to drive economic growth while identifying financial vulnerabilities, and to explore how such insights can contribute to civic education and policy literacy in Indonesia. A qualitative descriptive case study approach is applied, using secondary data from government reports, academic literature, and credible media sources, framed within dependency theory and the debt-trap diplomacy discourse. Findings reveal that although the KCIC has potential benefits for connectivity and investment attraction, significant cost overruns and reliance on long-term foreign loans may expose Indonesia to fiscal risks similar to those experienced by Sri Lanka. Policy recommendations include diversifying financing sources, enhancing project governance, and embedding infrastructure analysis into public policy and strategic leadership education. These measures can strengthen national capacity to negotiate and manage large-scale infrastructure projects, aligning economic development with sustainable sovereignty.
Co-Authors Dewantara, Bachtiar Fathulliansyah, Noor M. Arief Ramdhany Pawar, Avinash