JAKARTA - The government ensures that the construction of a logistics railway network on the island of Kalimantan will not use the State Budget (APBN). The project will be offered to investors through a non-APBN financing scheme.
Minister of Transportation Dudy Purwagandhi said the government opened the widest possible opportunities for the private sector to be involved in the development of the logistics train network.
"We offer the private sector to build a logistics train network in Kalimantan," said Dudy in Jakarta, Saturday.
According to him, PT Kereta Api Indonesia (Persero) is also invited to invest if it considers that the project has promising business prospects.
Dudy gave an example of the success of railway logistics transportation in South Sumatra which was managed commercially by PT KAI without government subsidies. This sector has even become one of the largest revenue contributors to the company.
He assessed that a similar business model could be applied in Kalimantan so that it could support the sustainability of railway operations through cross-subsidy mechanisms between business lines.
Dudy revealed that President Prabowo Subianto gave special attention to the development of a logistics train network in Kalimantan as part of strengthening national connectivity.
However, the realization of the project still depends on the readiness of investors considering that the construction of the railway network requires very large investments.
"The construction of the railway requires a lot of costs, so it must be supported by a mature business plan," he said.
The government is currently planning to build around 2,772 kilometers of railway lines in Kalimantan to strengthen inter-regional connectivity and facilitate logistics distribution.
Previously, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono stated that the government was still compiling comprehensive planning, including the formation of a cross-ministerial and agency committee to perfect the National Railway Master Plan (Ripnas).
According to Agus, Kalimantan has great natural resource potential, especially in the mineral sector, but until now it does not have a railway network. The presence of this mode of transportation is expected to increase logistics efficiency while opening inter-regional connectivity throughout the island of Borneo.
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