Rp 350 Trillion Trans-Sumatra Railway Will Not Rely on State Budget

Transport Minister Dudy Purwagandhi has stated that the development of the Trans-Sumatra Railway project, covering the route from Banda Aceh to Bandar Lampung, will not rely on the State Revenue and Expenditure Budget (APBN). Speaking after a working meeting with Commission V of the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (4/6/2026), the minister said the government is exploring various alternative financing schemes to accelerate construction of the railway network. “We certainly must innovate. We are not solely depending on government funds. We must innovate so that we can secure funding outside the APBN,” said the minister. The government will prioritise various financing innovations so that the development of the Trans-Sumatra railway line can proceed without reliance on APBN support. Dudy stated that the government is open to the involvement of various funding sources outside the state budget to support the realisation of this national strategic transport project. He added that the involvement of the Daya Anagata Nusantara Investment Management Agency (BP Danantara) as well as the private sector represents one of the government’s hopes for supporting the financing of the Trans-Sumatra railway construction. “Yes, of course it is our hope (to involve Danantara or the private sector),” he said. The Trans-Sumatra railway line project is part of a follow-up to President Prabowo Subianto’s directive to strengthen railway networks outside Java, particularly to support more efficient logistics transport in order to bolster national economic growth. “We will finalise this. We will then promptly follow up as part of the hope and desire of the President (Prabowo Subianto) to develop more efficient railway transport, especially outside Java,” he said. The government has formed a special team to study the development of the Trans-Sumatra railway network, spanning approximately 1,700 kilometres, connecting Banda Aceh to Bandar Lampung.