Indonesia plans to invest about Rp1,200 trillion to expand and revive its railway network through 2045, targeting around 14,000 kilometers of new and reactivated railway lines, a senior minister said on Wednesday.
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono said the estimate covers long-term rail development outside Java, including Sumatra, Kalimantan, and Sulawesi.
“We estimate that if we want to add around 14,000 km in the coming years, the cost is about Rp1,200 trillion until 2045,” Yudhoyono said after a coordination meeting in Jakarta.
The plan forms part of Indonesia’s broader Vision 2045 strategy and will require phased execution with sustained financing from multiple sources, including public and private investment.
Yudhoyono said annual funding needs could reach Rp60 trillion to Rp65 trillion over roughly 20 years, though the figures remain preliminary and subject to further refinement.
“This calculation is not final. Infrastructure development depends heavily on geographic conditions, but at least this is an initial estimate for discussion,” he said.
Rail infrastructure gaps remain significant outside Java. Sumatra currently has about 1,871 kilometers of track but needs an additional 7,837 kilometers to meet connectivity demand.
Kalimantan has no railway network and requires at least 2,772 kilometers of new railway lines, while Sulawesi has only 109 kilometers and needs an additional 3,284 kilometers to improve regional mobility.
Yudhoyono said development would proceed in stages, combining medium- and long-term plans with early quick-win programs to accelerate priority routes.
One project under review includes a railway link from Banda Aceh to Besitang in North Sumatra to strengthen strategic regional connectivity.
Funding will come from the state budget, regional budgets, public-private partnerships, and private and foreign investment, with the government also seeking international cooperation.
He added the government would pursue innovative financing while strengthening domestic industry capacity to support sustainable infrastructure growth.
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Translator: Muhammad Harianto, Martha Herlinawati Simanjuntak
Editor: M Razi Rahman
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