Indonesia's Trans Sumatra Railway Project to Seek Non-State Budget Funding

The ambitious Trans Sumatra Railway project, envisioned to connect Banda Aceh to Bandar Lampung across approximately 1,700 kilometers, will pursue funding independent of Indonesia's state budget (APBN). Minister of Transportation Dudy Purwagandhi emphasized the need for innovative financing to expedite the development of this crucial transportation network.

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We certainly have to innovate. We cannot just rely on the government budget. But we must innovate so that we can get funding outside the APBN.

"We certainly have to innovate. We cannot just rely on the government budget. But we must innovate so that we can get funding outside the APBN," Purwagandhi stated following a working meeting with Commission V of the House of Representatives (DPR RI) in Jakarta.

The government is actively seeking diverse funding sources beyond the national budget, including potential involvement from the Investment Management Agency of Nusantara (BP Danantara) and the private sector. This approach aims to support the realization of the strategic national transportation project.

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Yes, of course, our hope is (to involve Danantara or the private sector).

President Prabowo Subianto has directed the strengthening of railway networks outside Java to enhance logistics efficiency and stimulate national economic growth. The formation of a special team to study the Trans Sumatra Railway's development underscores the government's commitment to this initiative, which is expected to significantly improve connectivity and economic activity across Sumatra.

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This will be matured. Then we will immediately follow up as part of the hope and desire of the President (Prabowo Subianto) to develop more efficient railway transportation, especially outside Java.