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Government Seeks Private Funding For Network Expansion By 2045

ByArticle Source LogoTrackopedia05-27-20261 min
Trackopedia
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For its railway expansion programme running until 2045, the Indonesian government is considering not only budgetary funds but also private financing and partnerships with the private sector. The project involves extending the network, which currently stands at around 8,000 km, by 14,000 km and, according to the Ministry of Infrastructure, will require investments of up to EUR 58.8 billion (IDR 1.2 quadrillion). Plans include new construction and the reactivation of existing lines outside Java, with a focus on Sumatra, Kalimantan and Sulawesi. In Sumatra, the modernisation of existing lines is planned. In Kalimantan, a new network spanning 2,772 km is planned. In Sulawesi, railway expansion is to focus on industrial areas and the transport of key goods. An inter-ministerial committee is drawing up the national railway master plan and aligning the projects with the long-term development strategy. According to government figures, rail currently accounts for 4% of passenger transport and 1% of freight transport.

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