Trans Sumatra railway will not rely on state budget: Minister

Jakarta (ANTARA) - Indonesia Transportation Minister Dudy Purwagandhi has said the development of the Trans Sumatra railway project, connecting Banda Aceh to Bandar Lampung, will not rely on the state budget.

Speaking after a working meeting with House of Representatives Commission V in Jakarta on Thursday, June 4, Purwagandhi said the government is exploring various alternative financing schemes to accelerate the development of the railway network.

"We certainly have to innovate. We cannot rely solely on the government budget. We must innovate so that we can secure funding from outside the state budget," he said.

He added that the government is opening opportunities for various funding sources outside the state budget to support the realization of the national strategic transportation project.

According to the minister, the possible involvement of the Daya Anagata Nusantara Investment Management Agency (BP Danantara), as well as the private sector, is among the government's hopes for supporting the financing of the railway development.

The Trans Sumatra railway project is part of a follow-up to President Prabowo's directive to strengthen railway networks outside Java Island, particularly to support more efficient logistics transportation and help drive national economic growth.

"We will further prepare this. We will also immediately follow it up as part of the President's hopes and aspirations to develop more efficient railway transportation, especially outside Java," the minister said.

The government has formed a special team to study the development of the Trans Sumatra railway network, which would span around 1,700 kilometers and connect Banda Aceh to Bandar Lampung.

PT Kereta Api Indonesia (KAI) President Director Bobby Rasyidin said the formation of the team was a follow up to President Prabowo's directive.

"We are now forming a special team to study this with the Coordinating Ministry for Infrastructure and Regional Development, Danantara and the Transportation Ministry," Bobby said on Wednesday, June 3.

He added the President's directive is to strengthen inter-regional connectivity across the island.

Bobby estimated the Trans Sumatra railway network requires around Rp350 trillion or US$25 billion of funding.

The active railway lines in Sumatra are currently still fragmented and not fully interconnected.

The KAI has set the development of the Banda Aceh-Besitang railway line as the top priority in the initial stage of the Trans Sumatra project.

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Translator: Bayu Prasetyo, M Harianto

Editor: Arie Novarina

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