Kaltara Investment Reaches IDR 11 Trillion, Provincial Government Studies Development of Logistics Railway

TANJUNG SELOR - The realization of investment in North Kalimantan (Kaltara) has now reached Rp. 11 trillion in the first quarter of 2026. In line with the increasing industrial and investment activities, the Provincial Government (Pemprov) Kaltara is now beginning to study the development of a logistics railway network as a solution to support the distribution of the region's flagship commodities.

"The construction of this logistics railway line is one of the strategic needs to support regional economic growth, especially in the mining and palm oil plantation sectors which continue to grow," said Zainal, Monday, June 15.

He explained that the plan was a follow-up to the previous meeting held by the Provincial Government of Kaltara with PT Indonesia Transit Synergy (INTRA) regarding the opportunity for the development of rail-based transportation in the Kaltara region.

"For coal and palm oil entrepreneurs, they can use this train so that the transportation costs will be cheaper to the industrial area and the port," he explained.

He revealed that the Provincial Government (Pemprov) of North Maluku assessed that the rail-based transportation mode has great potential to increase the efficiency of the distribution of goods from production centers to industrial areas and ports.

"This line is planned to connect a number of commodity-producing areas such as Bulungan Regency, Tana Tidung, Malinau to Nunukan," said Zainal.

"In addition to reducing logistics costs, the development of logistics railways is also expected to be able to reduce the density of heavy transport vehicle traffic and minimize road damage due to the mobility of large-tonnage trucks," he continued.

The North Kalimantan Provincial Government also encourages understanding to be built between PT INTRA and companies that have the potential to become users or off-takers of the logistics railway network in the future.

Zainal hopes that the discussion can open up opportunities for long-term cooperation between the government and the business world to support the development of strategic infrastructure in Kaltara.

"Hopefully the previous meeting will open up opportunities for long-term cooperation that will benefit all parties," he said.

He explained that the development of the railway network was not only directed towards logistics needs, but also had the potential to become a passenger transportation mode that connects various regions on the island of Kalimantan.

In addition, the North Kalimantan Provincial Government has established communication with Brunei Darussalam regarding the opportunity to develop a cross-country railway network connecting Kalimantan, Malaysia, and Brunei.

"With the support of increasing investment, the regional government is optimistic that the development of strategic transportation infrastructure can strengthen regional competitiveness, encourage economic growth and improve connectivity in border areas," he said.