DPR Proposes Private Sector Involvement in Indonesia's Railways, Not Just KAI

Jakarta, CNBC Indonesia - A member of the National DPR RI Commission V from the PAN faction, Boyman Harun, has proposed that the national railway business should not be managed only by state-owned enterprises such as PT Kereta Api Indonesia (Persero) or KAI. He argued that the government should open up greater opportunities for private companies to help manage the rail sector, especially to accelerate improvements in safety and transportation services.

Harun made the suggestion at a working meeting with the Ministry of Transport, the Ministry of Public Works, the National Transportation Safety Committee (KNKT), PT KAI (Persero), and Basarnas, after highlighting frequent railway accidents caused by many level crossings without adequate protection.

‘So I have a suggestion. How about this, given the budget issue, why don’t we privatise it like tolled roads?’ Harun said at the Working Meeting of Commission V in the Parliament Complex, Jakarta, on Thursday (21 May 2026).

He argued that private sector involvement could be a solution if the government faces budget constraints in building railway safety infrastructure such as protective gates and flyovers.

Harun assessed that the railway business in Indonesia is highly promising and profitable due to a large number of passengers. Therefore he believes the sector is attractive for private investment.

He added that the problem of railway accidents is no longer about finding causes but about the government’s willingness to resolve budgetary and safety infrastructure issues.

‘This is clearly a case of wilful neglect. This is a country; the government must be responsible for the accidents. There is no need to search for causes; it is obvious but left unchecked. That is wilful neglect,’ he concluded.

Meanwhile, Chairman of Commission V, Lasarus, said the DPR would test the effectiveness of the government and rail operator’s mitigation measures, with the Ministry of Transport as regulator and PT KAI Persero as operator. He noted that the main problems in the rail sector have long been known, including causes and solutions.

‘We will test, sir, how effective the steps taken by PT KAI as operator are, and the measures taken by the Ministry of Transport to mitigate potential accidents on the railway. If we are honest, the problems and causes can be explained; the solution, too,’ Lasarus said.

He called the meeting an important moment to evaluate the seriousness of the government in addressing railway safety, particularly at level crossings.

‘… We will monitor how effectively the government, specifically the Ministry of Public Works and Housing, addresses the level-crossing issue. This will also require a large budget. It is around Rp30 trillion for national roads; we must find a way to address this,’ he said.

Therefore Commission V plans to include a specific directive to the Ministry of Transport in the meeting conclusions, obliging it to immediately resolve level-crossing issues, with a deadline to be set.

‘We will require the Ministry of Transport to promptly resolve the issue of level crossings,’ he stated, and we await the timeframe for when this can be completed.

He also opened the possibility of revising the Transport Act if necessary to clarify authorities and speed up railway safety improvements.

‘If there is an authority issue, we should resolve it soon. We will discuss with the Minister of Transport whether the Transport Act needs revision. We will revise it if it is for the better,’ he concluded.

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