National Railway Development Requires Rp 234 Trillion in Funding

In the 2015-2019 National Medium-Term Development Plan (RPJMN), the Ministry of Transportation allocated Rp 234 trillion for railway programs. Of this amount, the government could only fund Rp 62.5 trillion from the State Budget (APBN), or approximately 27 percent of the total funding. This left a financing gap of Rp 171.8 trillion.

This funding shortfall was targeted to be covered by Rp 14 trillion (approximately 5.9 percent of the total) from State-Owned Enterprises (BUMN), Rp 44.9 trillion (approximately 19.2 percent) from Government and Business Entity Cooperation (KPBU), and Rp 112.9 trillion (48 percent of the total funding) from creative financing involving full private/foreign participation.

The national railway network in 2030 is projected to reach 12,100 km, spread across Java-Bali, Sumatra, Kalimantan, Sulawesi, and Papua. This includes a 3,800 km urban rail network.