THE government of Indonesia is considering alternative means of finance, including partnerships with the private sector, for an ambitious rail expansion programme that will add 14,000km to the current network of around 8000km by 2045.
The programme is estimated to require investment of up to Rupiah 1200 trillion ($US 60bn). According to coordinating minister for infrastructure and regional development, Agus Harimurti Yudhoyono, the programme will combine new construction with reopening existing lines outside the most populous island of Java, concentrating on Sumatra, Kalimantan and Sulawesi.
A cross-ministerial committee will be formed to finalise the national railway masterplan, ensuring that projects are aligned with long-term development strategy. According to Agus, existing lines will be upgraded in Sumatra, while an entirely new 2772km network will be built in Kalimantan. Rail development in Sulawesi will focus on serving industrial areas and moving key commodities.
“The figures are substantial, but this is a long-term investment in Indonesia’s future,” Agus says. “We cannot rely solely on the state budget.”
Infrastructure development and improving connectivity are priorities for Indonesia’s president, Prabowo Subianto. Expanding the rail network outside Java will lower transport costs, reduce regional disparities and improve economic competitiveness, according to Agus.
The railway network currently accounts for 4% of national passenger traffic and 1% of freight moved in Indonesia. Agus notes that rail is more efficient and has lower emissions, contributing less than 1% to national greenhouse gas emissions.
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