Indonesia Taps China, Russia for Trans-Kalimantan Railway Project

Indonesia is actively seeking investment from China, Russia, and domestic investors to develop the ambitious Trans-Kalimantan railway project. Transportation Minister Dudy Purwagandhi announced the initiative, which follows President Prabowo's directive to accelerate the development of both Trans-Sumatra and Trans-Kalimantan railway networks.

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We have coordinated with KAI, which has prepared its roadmap. We hope to attract both domestic and foreign investment to develop Trans-Sumatra and Trans-Kalimantan.

While parts of the Trans-Sumatra network are already established, the Trans-Kalimantan railway requires entirely new construction on the island of Borneo. The government has begun engaging with potential investors, noting that Russia and China have expressed particular interest in the Kalimantan project. Minister Purwagandhi stated that discussions are ongoing, with these countries currently evaluating the projects and preparing to submit proposals.

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We have reached out to domestic and foreign investors, including Russia and China.

The timeline for initiating either the Trans-Sumatra or Trans-Kalimantan project remains uncertain, as it hinges on which project investors deem more commercially viable. Purwagandhi observed that state-owned PT Kereta Api Indonesia (KAI) seems more inclined towards expanding logistics infrastructure in Sumatra, whereas Chinese and Russian investors appear more focused on Kalimantan.

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It depends on which project investors consider more viable.

President Prabowo has emphasized the importance of national rail expansion, challenging KAI and the Ministry of Transportation to undertake these significant infrastructure endeavors. He has tasked them with developing the Trans-Sumatra railway first, followed by the Trans-Kalimantan network, or ideally, initiating both simultaneously. Prabowo stressed the need to assign difficult tasks, demonstrating confidence in the capabilities of KAI and the ministry.

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After Trans-Sumatra, we'll move to Trans-Kalimantan. If possible, let's start both at the same time.