{
    "success": true,
    "data": {
        "id": 1714838,
        "msgid": "building-rails-reducing-costs-challenges-and-directions-for-indonesias-railways-1777787531",
        "date": "2026-05-03 11:33:00",
        "title": "Building Rails, Reducing Costs: Challenges and Directions for Indonesia's Railways",
        "author": "Ferril Dennys",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Infrastructure",
        "summary": "Indonesia's railway network, currently limited to around 6,400\u20136,500 km and concentrated on Java, struggles to meet growing national logistics needs, leading to overreliance on road transport and high logistics costs at 23% of GDP. This inefficiency hampers economic competitiveness by driving up goods prices and straining infrastructure. Expanding the network twofold, with new lines outside Java, capacity enhancements, and integrations with ports and industrial zones, could significantly improve distribution efficiency, reduce environmental impact, and alleviate road pressures.",
        "content": "<p>Indonesia actually does not lack development plans, but often faces\nchallenges in execution and financing. This is also evident in the\nrailway sector. Indonesia\u2019s current rail network remains limited and has\nyet to support the continuously increasing national logistics needs. The\nlength of operational railway lines is around 6,400\u20136,500 km, with the\nlargest concentration on Java as the national economic activity hub.\nSumatra has a more limited network, while other regions such as\nKalimantan, Papua, and Maluku lack significant operational rail\nnetworks. This disparity directly impacts goods distribution patterns,\nwhich still heavily rely on roads. Around 90 per cent of national\nlogistics are still transported by trucks. In the short term, this\nsystem is indeed flexible. On major routes like the North Coast of Java,\ntruck traffic flows almost non-stop. Roads that should serve general\nmobility have instead become the backbone for heavy logistics. The\nimpacts are not only felt on infrastructure but also on overall economic\ncosts. Indonesia\u2019s logistics costs remain around 23 per cent of Gross\nDomestic Product, higher than neighbouring countries in Southeast Asia.\nWhen distribution costs are high, goods prices are pushed up\naccordingly. Indonesian products become less competitive, both in the\ndomestic market and for exports. In this context, transportation issues\nare no longer merely technical matters but have become strategic issues\naffecting national economic competitiveness. In many countries, railways\nserve as the backbone for distributing large volumes of goods over long\ndistances. One freight train can replace dozens of trucks at once, with\nmore efficient operational costs and lower environmental impacts.\nHowever, in Indonesia, the role of railways in goods transport remains\nrelatively small. This means the actual efficiency potential available\nhas not been optimally utilised. Therefore, the discourse on developing\nthe rail network up to twice the current size is gaining strength. The\nbig picture includes building new lines outside Java, strengthening\nexisting lines, and integrating with ports, industrial zones, and\nlogistics centres. On Java, the main needs are capacity increases\nthrough double tracks and the development of high-speed services. On\nSumatra, the focus is on connectivity between economic zones and\ncommodity transport routes. If this network can be built gradually and\nconsistently, the impacts will be very significant. Goods distribution\nwill become more efficient and stable, travel times more predictable,\nand pressure on the road network reduced.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/building-rails-reducing-costs-challenges-and-directions-for-indonesias-railways-1777787531",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}