Government Targets Reactivation of 14,000 Km of National Railway Lines, Aceh-North Sumatra as Priority
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) highlighted the development of railway lines in Sumatra, particularly the route from Aceh to North Sumatra, as one of the projects with potential to become an early priority (quick wins).
AHY conveyed this following a coordination meeting on the development of the national railway network, which involved several ministries, agencies, and related state-owned enterprises (SOEs) at Tanah Abang Station, Central Jakarta, on Wednesday (22/04/2026).
The development of the railway network is part of the government’s priority programme in the infrastructure and regional development pillar, including the expansion of railway networks in Sumatra, Kalimantan, and Sulawesi.
In addition, AHY revealed the imbalance in railway network development between Java Island and other regions in Indonesia.
Of the total approximately 12,000 kilometres of existing rail networks, around 10,000 kilometres are located on Java Island. Of that amount, approximately 7,000 kilometres are still actively operating, while the rest are inactive.
“Thus, the President’s directive to develop railway networks in Sumatra, Kalimantan, and Sulawesi becomes strategic,” said AHY.
He added that such development is important to support logistics distribution, especially in regions with significant natural resource potential (SDA).
The government, according to AHY, will encourage financing through various schemes, ranging from the State Revenue and Expenditure Budget (APBN), Regional Revenue and Expenditure Budget (APBD), Government and Business Entity Cooperation (KPBU), to private and foreign investments.
On the same occasion, AHY stated that the government estimates a budget need of Rp 1,200 trillion to build and reactivate approximately 14,000 kilometres of railway tracks in the long term.
He explained that, assuming development over 20 years until 2045, the annual budget requirement ranges from Rp 60 trillion to Rp 65 trillion.
However, these figures are still preliminary and will continue to be refined according to the geographical conditions and needs of each region.