June 5, 2026 | 02:24 pm
TEMPO.CO, Jakarta - Transportation Minister Dudy Purwagandhi has opened the door for BPI Danantara to participate in financing the development of the Trans-Sumatra Railway network, which is designed to connect Aceh to Lampung.Dudy stated that the government is preparing several funding schemes to bring the mega-project to fruition, including partnerships with Danantara and the private sector. This step is being taken to reduce heavy reliance on the State Budget (APBN)."We must innovate and not only rely on the government budget to secure funding outside of the APBN," Dudy told reporters after a working meeting with the Commission V of the House of Representatives (DPR) on Thursday, June 4, 2026.He added that the Ministry of Transportation will continue to coordinate closely with the Coordinating Ministry for Maritime Affairs and Investment regarding the project's development blueprint.According to Dudy, constructing a railway network outside of Java directly follows the President's directives to strengthen rail transit, particularly logistics transport, in various regions, including Sumatra, Kalimantan, and Sulawesi. "We will finalize this to develop more efficient railway transportation, especially outside of Java," he noted.Previously, state-owned rail operator PT Kereta Api Indonesia, or KAI, revealed that the investment requirement for the Trans-Sumatra Railway project is estimated to hit Rp350 trillion. The project is part of broader efforts to boost interregional connectivity while driving economic growth and logistics distribution across Sumatra."We are developing a network in Sumatra, specifically connecting Banda Aceh with Bandar Lampung," KAI President Director Bobby Rasyidin said during a hearing with House Commission VI on Wednesday, June 3, 2026.Bobby explained that the current railway network in Sumatra remains fragmented and split into several isolated corridors. The operational corridors include Bandar Lampung-Palembang, Bandar Lampung-Lubuklinggau, networks in North Sumatra and Aceh, and a section in West Sumatra.According to him, integrating these separate tracks is expected to increase passenger mobility, accelerate freight distribution, and spur regional economic growth. He went on to state that KAI is prioritizing the construction of the Banda Aceh-Besitang line, which spans approximately 478 kilometers.Overall, KAI is still mapping out the basic design as part of the project’s preparatory phase. Bobby estimated that the total investment required for the project sits around US$20 billion to US$ 25 billion, or roughly Rp350 trillion. "The total for Sumatra could be around Rp350 trillion from end to end," he concluded.Read: Indonesia to Cull Subsidiaries of State Power Firm PLN by 2028Click here to get the latest news updates from Tempo on Google News
