The Ministry Of Transportation Offers Three Potential Railway Projects At Shanghai International Forum

The Ministry of Transportation through the Directorate General of Railways (DJKA) offers three potential projects for Indonesia's railway development to investors.

The offer was submitted by the 17th Shanghai International Exhibition of Intercity and Urban Mass, Rail+Metro China 2024 which will be held from June 5 to 7, 2024 at the Shanghai International Exhibition for Intercity and Urban Mass Transit, Shanghai, China.

The three projects are the Bandung Urban Rail Train (KA), Airport Train and urban train in the capital city of Nusantara (IKN), in East Kalimantan.

Director General of Railways, Risal Wasal said the three rail projects were part of the DJKA 2024 Strategic Plan until 2029.

"In realizing the target for the next Strategic Plan, we open up opportunities for ladies and gentlemen to jointly maximize the development of the Indonesian railway sector, including the three projects with high economic potential," said Risal in an official statement, Monday, June 10.

Risal said the Bandung Urban Train was chosen as one of the projects offered considering its very strategic role in accommodating the high mobility of the community, as well as connecting the Fast Train service bettersh with the centers of economic activity in this metropolitan area.

In this case, continued Risal, the Bandung urban train project is projected to have an investment return rate (IRR) of 11.9 percent and supported by a 49 percent profit gap.

"With this huge potential, we open up opportunities for ladies and gentlemen to participate in the Bandung Urban Train project through the KPBU scheme with a concession period of up to 30 years," said Risal.

Regarding the development of rail transportation in the IKN area, Risal said that currently there are still two project plans that are still open to investment cooperation. The two projects include the Sepinggan-IKN Airport Train, as well as the IKN Urban Train which will serve the community in this new area.

For information, the Sepinggan-IKN Airport Train line will serve 5.2 million passengers per year by 2030, and cut the travel time by only 30 minutes for a distance of 46.04 km. This railway line will also go through the economic centers of East Kalimantan so that it is expected to be a catalyst for the growth of this region.

"Meanwhile, the IKN Urban Train route is expected to connect this new capital area with surrounding cities such as Balikpapan to facilitate community mobility between the two cities," said Risal.

In order to support the IKN Urban Train development plan, Risal said that the government is ready to provide support in the form of land acquisition and provision of a viaability gap fund (VGF) of 49 percent of the total investment value.

At the 17th Shanghai International Exhibition of Intercity and Urban Mass, Rail+Metro China 2024, DJKA also invited stakeholders and railway industry players to participate in offering superior products and services from each company.

The business entities that DJKA collaborated with for this activity were PT Adhi Karya Tbk, PT Wijaya Karya Beton Tbk, PT Kereta Cepat Indonesia China, PT Kereta Commuter Indonesia, PT Celebes Railway Indonesia, and PT Len Railway Systems.