Indonesian Political, Business & Finance News

AHY pushes for strengthening of national railway industry to support efficient transportation

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
AHY pushes for strengthening of national railway industry to support efficient transportation
Image: ANTARA_ID

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) is pushing for the strengthening of the national railway industry to support an efficient transportation system as well as integrated and sustainable infrastructure development.

AHY stated that this push aligns with input from the National Research and Innovation Agency (BRIN), which considers the development of a domestic railway industry important amid the rising national transportation needs.

“Earlier, the Head of BRIN (Arif Satria) also strongly encouraged us to advance the national railway industry at the same time. Why not? Because the needs are there,” said Coordinating Minister AHY after the coordination meeting on the development of the national railway network at the new Tanah Abang Station, Jakarta, on Wednesday.

According to him, the development of the railway industry must be supported by an integrated ecosystem involving various stakeholders, from technical ministries and state-owned enterprises (SOEs) to industry players.

“We will ensure the industrial ecosystem is built well, as the Ministry of Industry also conveyed earlier, and the SOEs as well, so that there is a complete process,” he said.

Thus, Indonesia will not only be a consumer but will be able to build self-reliance in the railway-based transportation industry in a sustainable manner.

“So that we do not only buy products or technology from abroad, but also build national railway industry self-reliance,” he said.

AHY added that the roles of the Ministry of Industry and SOEs are crucial in building the industrial chain, from production to technology development.

He also emphasised the importance of strengthening synergy between the central government and regions so that railway-based transportation development can address the broad mobility needs of the public.

“We will guide together the development of routes from the aspects of spatial planning, technology, to cooperation with regions to strengthen public transportation,” said AHY.

In the meeting, the government set plans for the reactivation and construction of railway lines totalling around 14,000 kilometres in Sumatra, Kalimantan, and Sulawesi.

Meanwhile, in Sulawesi, the operating railway line spans 109 kilometres, with an additional need of around 3,284 kilometres.

To realise the development of the network by around 14,000 additional kilometres as well as route reactivation, Coordinating Minister AHY mentioned that the investment requirement reaches Rp1,100 to Rp1,200 trillion until 2045.

The coordination meeting was also attended by the Minister of National Development Planning/Head of Bappenas Rachmat Pambudy, Head of BRIN Arif Satria, Deputy Minister of Home Affairs Akhmad Wiyagus, Deputy Minister of Agrarian Affairs and Spatial Planning/National Land Agency Ossy Dermawan, Deputy Head of the SOE Supervisory Board Amminudin Ma’ruf, Director General of Railways at the Ministry of Transportation Allan Tandiono, and President Director of PT Kereta Api Indonesia (KAI) Bobby Rasyidin.

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