Indonesia | To Expand its Railway Network by 14,000 Km to Bolster Connectivity and Drive Regional Development

Indonesia plans a  massive expansion of its railway network, aiming to add approximately 14,000 km of tracks across the archipelago to bolster connectivity and drive regional development, according to the Coordinating Minister of Infrastructure and Regional Development, Agus Harimurti Yudhoyono.

According to Xinhua News Agency the plan, which includes both new construction and the reactivation of idle routes, will prioritize areas outside central areas in Java, specifically Kalimantan, the Indohnesian portion of Borneo, constituting about 73% of the world’s third – largest island, Sulawesi, one of the four Greater Sunda Islands, situated east of Borneo, west of the Maluku Islands and south of Mindanao, and Sumatra, a massive island west of Java and south of the Malay Penisula.

The Coordinating Minister of Infrastructure and Reional Development stressed that expanding rail connectivity beyond the country’s most populous island is critical to reducing logistics costs and decreasing regional economic disparities.

Given the magnitude of the project, the official pointed out that a substantial financial commitment that exceed the capacity of the state budget will be required, so the country is promoting alternative financing schemes.

The Minister added that the figures are substantial, but this is a long - term investment in Indonesia’s future, and the nation cannot rely solely on the state budget.

The Indonesian government is promoting partnerships with the private sector as part of alternative financing strategies to make this ambitious railway expansion plan viable.

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