Even Though 70 Hectares Of Land Have Been Acquired, The Construction Of The Borneo Railways Has Been Canceled After The Russian Railways Withdrew

Kadis PMPTSP Kabupaten Penajam Paser Utara, Alimuddin (Photo via Antara)

JAKARTA - The project for the construction of the 203-kilometer Borneo Railway that crosses North Penajam Paser Regency, West Kutai Regency and Balikpapan City worth IDR 53.3 trillion has been canceled. Because Russian Railways as the owner of the capital, resigned.

"The resignation letter was submitted directly to the central government in 2020," said the Head of the North Penajam Paser Regency Investment and One Stop Service (PMPTSP), Alimuddin in Penajam, Friday, March 4, quoted from Antara.

The total land area designated as the location for the construction of the Borneo Railway in the North Penajam Paser Regency area is around 140 hectares.

In fact, about 70 hectares of land designated as the location for the construction of the Borneo Railway in Gunung Steleng and Buluminung villages have been acquired.

The land that has been acquired in the Buluminung Industrial Estate or KIB in Penajam District, he explained, is for the construction of a train station.

The construction of the railway line is managed by PT Kereta Api Borneo, which is a joint venture between the East Kalimantan Provincial Government and the Russian railway company, namely Russian Railways.

PT Kereta Api Borneo has also conveyed that the construction of railroads in the East Kalimantan region has been canceled, because the Russian-owned company resigned.

However, according to Alimuddin, PT Kereta Api Borneo will still invest or invest in North Penajam Paser Regency, but not in the railway sector or sector.

"Especially for railways, PT Kereta Api Borneo will evaluate it, but it will still invest in the North Penajam Paser area," he said.

The type of business is not yet known because PT Kereta API Borneo only conveyed that the investment plan will continue. The details of PT Kereta Api Borneo's business plan in the area nicknamed "Benuo Taka" are not yet known after the railway line construction project was canceled.