Trans Sumatra Railway Development Will Not Rely on State Budget, Says Minister
Transport Minister Dudy Purwagandhi has stated that the development of the Trans Sumatra Railway project, spanning the route from Banda Aceh to Bandar Lampung, will not rely on the State Revenue and Expenditure Budget. Speaking after a working meeting with Commission V of the House of Representatives in Jakarta on Thursday, the minister said the government is exploring various alternative financing schemes to accelerate the construction of the railway network.
“We certainly must innovate; we cannot just depend on the government budget. We must innovate so that we can obtain funding outside the state budget,” Minister Dudy said. The government will prioritise various financing innovations so that the development of the Trans Sumatra railway line can proceed without depending on state budget support.
Dudy stated that the government is opening opportunities for 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 in supporting the financing of the Trans Sumatra railway line construction. “Yes, of course our hope is to involve Danantara or the private sector,” he remarked.
The Trans Sumatra railway project is part of the follow-up to President Prabowo Subianto’s directive to strengthen railway networks outside Java, primarily to support more efficient logistics transport, thereby bolstering national economic growth. “We will finalise this. Then we will immediately follow up as part of the hopes and wishes of President Prabowo to develop more efficient rail transport, especially outside Java,” he said.
The government has formed a special team to study the development of the Trans Sumatra railway network, which spans approximately 1,700 kilometres. Bobby Rasyidin, President Director of PT Kereta Api Indonesia, said the team’s formation follows President Prabowo Subianto’s directive to develop railway networks outside Java. Bobby noted that his party will immediately conduct a study on the railway line development project together with the Coordinating Ministry for Infrastructure and Regional Development, Danantara, and the Ministry of Transportation.
“That is a directive from the President to us. We are currently creating a special team for this study with the Coordinating Ministry for Infrastructure, Danantara, and the Ministry of Transportation,” Bobby said after a working meeting with Commission VI of the House of Representatives in Jakarta on Wednesday. He explained that the railway network development in Sumatra is being carried out in accordance with President Prabowo’s directive to strengthen inter-regional connectivity on the island.
The funding requirement for the project is estimated to reach approximately US$25 billion, or around Rp350 trillion. “If you total it, the funds needed for the construction of the Trans Sumatra railway network could be around US$20-25 billion from end to end,” Bobby stated. According to Bobby, the currently active rail network in Sumatra remains fragmented and is not yet fully interconnected. KAI has designated the construction of the Banda Aceh-Besitang line as the top priority in the initial phase of the Trans Sumatra project.