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Ministry opens door to investment in Indonesia’s rail network

Jakarta (ANTARA) – The Indonesian government is offering investment opportunities to develop the national railway network, particularly to support logistics transport through the development of lines spanning from Sumatra to Kalimantan.”If other countries are interested, we are very happy and open to it,” Transportation Minister Dudy Purwagandhi remarked on Monday.The government is offering wide-ranging opportunities to both domestic and foreign investors for the development of the national railway network, aiming to strengthen logistics connectivity and support economic growth across various regions of Indonesia.According to him, railway projects are focused on routes with strong economic potential and the ability to drive regional development, prompting coordination with the Ministry of National Development Planning.Purwagandhi explained that the selection of routes takes into account regional economic potential, transportation needs, and support for regional development, ensuring that investments yield optimal benefits for the public and business stakeholders.He noted that the investment requirement had yet to be determined, as it would vary depending on the length and characteristics of the railway line, the type of train, and other technical factors under government review.The state-owned railway company, PT Kereta Api Indonesia, has shown interest in investing for the development of the national railway network, specifically regarding existing lines in the Sumatra region.Development efforts will focus on optimizing existing lines, with a primary priority on supporting logistics transport to support goods distribution more efficiently and boost economic competitiveness.Purwagandhi further revealed that Russia and China had also expressed interest in investing in Indonesia's railway sector, while the government remains open to interest from other nations as well.On the UK's interest in reviving approximately 2,000 kilometers of inactive railway lines, the minister said he was still waiting for further information and stressed that the government remains committed to the railway reactivation program.During the inauguration of the revitalized Semarang Tawang Station in Central Java last month, President Prabowo Subianto instructed PT Kereta Api Indonesia and the Ministry of Transportation to undertake the construction of the Trans-Sumatra railway line and to follow it up with the Trans-Kalimantan project.On the occasion, Prabowo explained that the Trans-Sumatra railway line would connect the southernmost part of Sumatra, namely Bakauheni in Lampung Province, to the island's northernmost region.