Coordinating Minister for Infrastructure and Regional Development\nAgus Harimurti Yudhoyono (AHY) stated that the government is promoting\nthe development of the national railway network as part of a strategy to\nstrengthen connectivity and reduce logistics costs. This effort is\nfocused on areas outside Java to lower logistics costs, reduce regional\ndisparities, and enhance national connectivity.<\/p>\n
AHY conveyed this during a coordination meeting on the follow-up to\nthe development of the Sumatra, Kalimantan, and Sulawesi (SKS) railway\nnetwork at Tanah Abang Station, Jakarta, on Wednesday (22\/4).<\/p>\n
In his directions, he emphasised that the development of inter-island\nrailway networks is a direct mandate from President Prabowo Subianto as\npart of the National Priority Work Programme (PKPN), particularly in the\ninfrastructure and connectivity sector.<\/p>\n
\u201cThis is a grand vision of the President. We want to ensure that\nSumatra, Kalimantan, and Sulawesi are not left too far behind. By\nbuilding an integrated railway network, we can significantly reduce\nlogistics costs and increase economic competitiveness between regions,\u201d\nAHY said in a written statement on Wednesday (22\/4\/2026).<\/p>\n
He explained that there is still a significant disparity in\nrail-based transportation development in Indonesia. Therefore,\nstrategic, planned, and collaborative steps across ministries,\ninstitutions, and regional governments are needed.<\/p>\n
\u201cWe must be honest about the current situation. Our railway network\nis still very limited compared to other countries. This is not to make\nus pessimistic, but rather to motivate us to work harder and more\ndirectedly,\u201d he added.<\/p>\n
AHY also highlighted the low contribution of railways to national\nmobility, at around 4% for passenger transport and 1% for logistics.<\/p>\n
\u201cHowever, railways have significant advantages, including in terms of\nefficiency and emissions. Even their contribution to greenhouse gas\nemissions is very low, less than 1 percent. This must be promoted as\npart of our commitment to achieving net zero emissions,\u201d he\nstressed.<\/p>\n
In addition, he pointed out the investment gap between road and\nrailway development, which remains quite wide.<\/p>\n
\u201cWe are not saying that road development is unimportant; it must\nstill be carried out. But we also see a significant gap in railway\ninvestment. This is what we must correct together,\u201d he said.<\/p>\n
In the context of regional development, AHY explained that each\nisland has different challenges and potentials. Sumatra needs\nstrengthening of existing networks and expansion of new routes,\nKalimantan requires building from scratch, while Sulawesi needs\nintegration of networks with industrial areas and flagship\ncommodities.<\/p>\n
\u201cKalimantan does not even have a railway network yet. This is a great\nopportunity for us to build from the beginning with better planning,\nincluding to support logistics and commodities,\u201d he clarified.<\/p>\n
To realise the development of an additional network of around 14,000\nkilometres and the reactivation of routes, the investment requirement is\nestimated to reach Rp1,100 to Rp1,200 trillion by 2045.<\/p>\n
\u201cThe figure is indeed large, but this is a long-term investment for\nIndonesia\u2019s future. We cannot rely solely on the state budget. There\nmust be creative financing, collaboration with the private sector, and\ninvolvement of various parties,\u201d he continued.<\/p>\n
Furthermore, AHY emphasised the important role of regional\ngovernments in supporting public transportation development,\nparticularly through more proportional budget allocations.<\/p>\n
\u201cRegional revenue from the transportation sector is actually quite\nlarge, but spending on public transportation is still low. This needs to\nbe encouraged to be more balanced and on target,\u201d he said.<\/p>\n
He also affirmed that national railway development must be carried\nout in an integrated manner with spatial planning and regional\ngrowth.<\/p>\n
\u201cWe cannot build railways partially. It must be integrated with\nspatial planning, economic centres, and community needs. This is a major\neffort that requires synergy from all parties,\u201d he concluded.<\/p>\n
This coordination meeting serves as an initial step in formulating\nconcrete strategies and policies to accelerate the development of an\ninclusive, efficient, and sustainable national railway network.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/to-reduce-logistics-costs-ahy-accelerates-development-of-inter-island-railway-1776844309", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }