Danantara Holds Potential to Finance Trans-Sumatra Railway Project
Minister of Transport Dudy Purwagandhi has opened the possibility for the involvement of the Danantara Investment Agency in financing the development of the Trans-Sumatra Railway network, which is designed to connect Aceh to Lampung. According to Dudy, the government is preparing several funding schemes to realise the project, including cooperation with Danantara and the private sector. This move is intended to reduce dependency on the State Budget (APBN).
“We must innovate and not only rely on the government budget so that we can secure funding outside of the APBN,” Dudy told reporters following a working meeting with Commission V of the House of Representatives on Thursday, 4 June 2026. He added that the Ministry of Transport will continue to coordinate with the Coordinating Ministry for Infrastructure and Regional Development regarding the project’s development schemes.
Dudy stated that the construction of railway networks outside Java is a follow-up to presidential directives to strengthen railway transportation, particularly for logistics, in regions such as Sumatra, Kalimantan, and Sulawesi. “We will mature this plan to develop more efficient railway transportation, especially outside Java,” he said.
Previously, PT Kereta Api Indonesia (Persero), or KAI, revealed that the investment requirement for the Trans-Sumatra Railway project is estimated to reach IDR 350 trillion. The project is part of an effort to strengthen inter-regional connectivity while supporting economic growth and logistics distribution on the island of Sumatra.
“We are developing the network on Sumatra Island, specifically how to connect Banda Aceh with Bandar Lampung,” said KAI President Director Bobby Rasyidin during a hearing with Commission VI of the House of Representatives on Wednesday, 3 June 2026. Bobby explained that the current railway network in Sumatra is not yet integrated and is divided into several corridors. Operating corridors include Bandar Lampung–Palembang, Bandar Lampung–Lubuklinggau, and networks in North Sumatra, Aceh, and parts of West Sumatra.
According to Bobby, the integration of these rails is expected to increase passenger mobility, accelerate goods distribution, and drive regional economic growth. Currently, KAI is prioritising the construction of the Banda Aceh–Besitang line, spanning approximately 478 kilometres. Overall, PT KAI is still preparing the basic design as part of the project’s preparation. Bobby estimates the total investment requirement for the entire project could reach US$20 billion to US$25 billion, or approximately IDR 350 trillion. “In total, Sumatra could cost around IDR 350 trillion from end to end,” he noted.