Jakarta. Indonesia plans to build a 14,000-kilometer railway network across Sumatra, Kalimantan, and Sulawesi over the next two decades as part of a major infrastructure drive beyond Java, a senior official said on Thursday.

The project is expected to require an investment of around Rp 1,200 trillion ($69.4 billion), Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono said in a statement.

“The figure is large, but this is a long-term investment in Indonesia’s future,” Agus said, adding that the cost would not be borne solely by the state budget and would also involve private-sector participation.

Based on the 20-year timeline, annual funding needs would average about Rp 65 trillion.

The government said rail infrastructure requirements remain substantial across the three major islands.

• In Sumatra, the existing rail network spans around 1,871 km, but an additional 7,837 km is needed to meet growing connectivity demand from a rising population.
• In Kalimantan, no operational railway network currently exists, while minimum development needs are estimated at 2,772 km.
• In Sulawesi, only about 109 km of rail line is currently available, leaving a further requirement of around 3,284 km to improve interprovincial connectivity.

“We must honestly assess today’s conditions. Our railway network remains very limited compared with other countries. This should not make us pessimistic, but instead motivate us to work harder and more strategically,” Agus said.

Rail transport currently plays a relatively minor role in Indonesia’s national mobility system, accounting for only about 4% of total passenger transport and 1% of logistics freight.

Agus also highlighted what he described as an investment imbalance between road and rail infrastructure.

In 2023, for example, budget allocations for roads reached about Rp 86.9 trillion, while railway infrastructure received only around Rp 6.5 trillion.

“We are not saying road development is unimportant. It must continue. But we also see a significant gap in railway investment, and that is something we need to correct together,” he said.

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