Hendrik_2000
Lieutenant General
Yes it is political goal at the cost of Chinese tax payer think about it ! As it stand now you are right the Indonesia fiscal condition is quite good. But they are close to default in Asian monetary crisis necessitating IMF to bail them out with harsh condition of liquidating bank and creating panic and riot. Many Chinese owned store, plaza were burned to the ground, rape everywhere. I don't know if you know the historyThere is no guarantee from Indonesia's government, but that says nothing about what China's government has said to the bank. If the Indonesians default, the Chinese government could bail out the China Development Bank; this seems likely to me as the Jakarta-Bandung HSR is clearly one of Beijing's political goals.
However, I doubt Indonesia will default, as they'll need a lot of investment: $500 billion just on infrastructure, never mind anything else. If they default, they will lose that investment from China. The Japanese import a lot of oil from Indonesia, so perhaps they might want to help, but their debt is already several times their total GDP, and they probably can't afford it. That is likely why they demanded a guarantee from Indonesia's government for Jakarta-Bandung: they couldn't afford to lose the $6 billion. China can.
If not Japan, who else can afford to invest $500 billion? I don't see anyone. Therefore I think the Indonesians will try very hard to hold up their end of the deal. Besides, the loan is cheap: 2% interest for $3 to $4 billion, 3% for the rest. Indonesia is getting the high speed railroad almost for free. What debt trap?
I don't think Indo export oil now they don't have enough for themselves and has to buy gasoline from Singapore. And quite a drain on the budget because they buy high and sell low(subsidized price).Temporarily they get respite because of glut in oil. So I don't know where you get the idea that Indo export oil to Japan. Their field is aging and declining with every year. They nationalize the oil exploration so nobody want to invest there. They did export LNG to Japan but now they want to curtail even that to meet domestic consumption.
So don't ever say never!