AHY Highlights Investment Disparity in Road and Railway Sectors

Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), highlighted the suboptimal development of the railway sector in Indonesia due to investment imbalances on Sunday (26/4/2026). According to Detik Finance, the difference in capital allocation between road infrastructure and railways remains very wide. The limited funding for rail-based transport has created a significant development gap compared to other infrastructure. According to AHY, this situation poses a major challenge in efforts to equalise regional development across the country. “We are not saying that road development is unimportant; of course, it must still be carried out. But we also see a significant gap in railway investment. This must be corrected together,” said AHY, Coordinating Minister for Infrastructure and Regional Development. The government targets the expansion of the national railway network to a length of around 14,000 kilometres by 2045. This ambitious project includes the reactivation of old, inactive lines as well as the construction of new rails in various regions. To achieve this target, a total investment estimated at Rp1,100 trillion to Rp1,200 trillion is needed. AHY stressed that fulfilling such a large amount of funding is impossible if relying only on the state revenue and expenditure budget (APBN). “The figure is indeed large, but this is a long-term investment for Indonesia’s future. We cannot rely only on the APBN. There must be creative financing, collaboration with the private sector, and involvement of various parties,” explained AHY, Coordinating Minister for Infrastructure and Regional Development. In addition to private sector involvement, support from local governments is also a crucial factor in accelerating public transport development. This is closely related to the allocation of regional budgets, which is considered not yet optimal for the mass transportation sector. “Regional revenue from the transportation sector is actually quite large, but spending on public transport is still low. This needs to be encouraged to be more balanced and on target,” said AHY, Coordinating Minister for Infrastructure and Regional Development.