AHY: Rail Network Development Reaches IDR 1,200 Trillion by 2045

JAKARTA - Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) stated that the development of the national railway network is targeted until 2045 with a budget requirement of around Rp. 1,200 trillion gradually.

The budget is directed for new construction as well as reactivation of the rail network along approximately 14,000 kilometers outside Java Island, covering the regions of Sumatra, Kalimantan, and Sulawesi.

"We calculate, if we want to add, say, 14,000 km (for reactivation and construction of the railway network) in the next few years, then the cost is estimated at around Rp. 1,200 trillion until (year) 2045," said AHY after a coordination meeting for the development of the national railway network at the Tanah Abang Baru Station, Jakarta, quoted by Antara, Wednesday, April 23.

The program is part of a long-term plan towards the Indonesia 2045 vision, which requires careful planning and sustainable financing support from various sources.

He estimated that the annual budget needs reached Rp. 60 to Rp. 65 trillion if the investment was divided over a period of about 20 years.

"This count is not final. We will still improve because building and developing infrastructure also depends very much on the geographical conditions of the areas we will develop. But at least, that is the initial count that we can convey as the material for the discussion earlier," he said.

The need for rail network development is still quite large outside Java. In Sumatra, the length of the train line is currently around 1,871 kilometers, but an additional 7,837 kilometers is still needed to meet the connectivity needs based on population.

In Kalimantan, the railway network is still not available, while the minimum construction needs are estimated at 2,772 kilometers.

Meanwhile, in Sulawesi, the length of the available train line is only around 109 kilometers, so it still needs an additional 3,284 kilometers to increase regional connectivity and mobility.

AHY emphasized that the development of the train network could not be done instantly, but required medium and long-term stages with the priority of quick program (quick wins) as an initial step.

"Of course it can't be instantaneous, it needs a medium-term, long-term process, so there must be quick wins and there must be adequate budgets. Well, here we calculate the approximate amount of what the needs are in 20 years to 2045, as well as approximately per year," he said.

A number of quick win projects are being studied, including the development of a train line from Banda Aceh to Besitang in North Sumatra to accelerate connectivity between strategic areas.

He added that the development of public transportation, including railways, is not only the responsibility of the central government, but also requires the active involvement of local governments.

In addition to relying on the state budget, financing for this project will involve the regional budget, government and business cooperation schemes, as well as private and foreign investment.

The government also opens opportunities for cooperation with countries that have experience in the development of railway transportation, both for urban passenger transportation and inter-regional logistics.

AHY emphasized that the government would continue to seek creative sources of financing to support infrastructure development while encouraging the strengthening of domestic industries to be more independent and competitive.