Jakarta‐Bandung High‐Speed Rail Project: Recognizing Chinese State Capitalism at Play

The Jakarta‐Bandung High‐Speed Rail ( Kereta Cepat Jakarta—Bandung , KCJB), a joint Indonesia China project sparked controversy regarding its financing structure and Indonesia's growing dependence on China. What evidence of Chinese state capitalism can be observed in the KCJB? What does the project reveal about the key traits of Chinese state capitalism? Using a qualitative case study approach, this paper traces patterns in Chinese financing of the KCJB as part of Belt and Road Initiative (BRI) and highlights the nature of such capitalism. The findings suggest that the collateral‐backed financing, which depends on mutual trust in the credibility of business partners and the capacity to accurately assess risks within the joint venture, become part of the agreement. Such model, however, blurs the boundaries between commercial and state interests, complicating what is formally presented as a business‐to‐business (B2B) framework. Ultimately, the project reflects how state‐driven strategies shape international financing practices.