Indonesian Political, Business & Finance News

Development of Railway Lines Outside Java Deemed Essential to Strengthen National Logistics

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
Development of Railway Lines Outside Java Deemed Essential to Strengthen National Logistics
Image: ANTARA_ID

The development of industrial zones, ports, and commodity centres outside Java is driving the need for national logistics connectivity to align with emerging economic growth. In this context, rail-based transportation is increasingly viewed as having a strategic role in ensuring the smooth distribution of large volumes of goods on a continuous basis.

Therefore, the government is accelerating discussions on developing the Trans-Sumatra, Kalimantan, and Sulawesi railway networks as part of long-term national connectivity strengthening.

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono stated that the development of rail networks is one of the infrastructure development priorities currently being discussed across ministries and agencies.

“We hope our railways can play a larger role for both passengers and freight transport. This way, regional connectivity and productivity can continue to improve,” said AHY after the national railway network development coordination meeting at Tanah Abang Station, Jakarta, on Tuesday (22/4).

In agreement, KAI Vice President of Corporate Communication Anne Purba said that the current national logistics distribution needs are increasingly tied to the development of production and industrial zones in various regions, especially outside Java.

According to Anne, the distribution pattern of large volumes of commodities requires a transportation system capable of operating stably, on schedule, and connected to production centres and ports.

For example, KAI recorded that the volume of plantation transport from January to April 2026 reached 213,857 tonnes, an increase of 6.18% compared to the same period in 2025, which was 201,408 tonnes.

Most of this transport is dominated by crude palm oil (CPO) and palm oil derivatives used for food industry needs to national biodiesel mixtures.

“The growth in plantation transport shows that the distribution of strategic commodities continues to develop. The mobility of large production outputs requires connectivity support that maintains the continuity of goods journeys from production areas to processing facilities and ports,” said Anne.

She explained that in several commodity-producing regions, logistics distribution often involves long journeys between areas. In such situations, rail-based transportation becomes an important part in supporting distribution efficiency because it has a large carrying capacity and consistent travel patterns.

According to Anne, the development of railway networks will also strengthen connectivity between economic nodes, from industrial zones and ports to regional distribution centres.

“When inter-regional connectivity improves, logistics movement becomes more integrated, and space for regional economic growth also expands,” clarified Anne.

The government estimates that the national rail network development needs amount to around 14,000 kilometres, to be carried out gradually through various development priorities and financing schemes.

In addition to supporting logistics connectivity, the development of rail-based transportation is also part of strengthening sustainable transport systems. In the coordination meeting, Coordinating Minister AHY conveyed that the emissions contribution from railways is relatively small compared to road-based land transportation modes.

Currently, the national railway network is still dominated by Java. Sumatra has a rail network that continues to develop, while Sulawesi and Kalimantan are part of the government’s medium- and long-term development plans.

“Railway development requires cross-sector synergy because transportation connectivity will also determine the smoothness of distribution, regional competitiveness, and future economic growth,” concluded Anne.

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