Key insights and market outlook
The Indonesian government is studying a proposed cross-border railway connecting Indonesia, Malaysia, and Brunei Darussalam on Kalimantan Island, which will also link to the new capital, Nusantara (IKN). This project is part of a larger plan to expand Indonesia's railway network to 12,000 kilometers, up from the current 7,000 kilometers. The initiative aligns with President Prabowo Subianto's directive to enhance railway connectivity across Sumatera, Kalimantan, and Sulawesi.
The Indonesian government is actively examining a proposal for a cross-border railway connecting Indonesia, Malaysia, and Brunei Darussalam on Kalimantan Island. This significant infrastructure project is also planned to be integrated with the country's new capital, Nusantara (IKN). The initiative is part of a broader strategy to expand Indonesia's railway network from the current 7,000 kilometers to 12,000 kilometers, a length previously achieved during the Dutch colonial era.
The cross-border railway proposal aligns with President Prabowo Subianto's directive to enhance railway connectivity across key regions, particularly Sumatera, Kalimantan, and Sulawesi. According to Odo RM Manuhutu, Deputy for Coordination of Connectivity at the Coordinating Ministry for Infrastructure and Regional Development, the government is currently assessing the feasibility of this ambitious project. While no formal proposal has been received from Malaysia, the Indonesian government is proceeding with preliminary studies to evaluate the project's potential benefits and challenges.
The railway expansion plan has two primary objectives: to increase the total length of railway tracks and to improve the density of railway networks relative to population and land area. Currently, Indonesia's railway density is considered low compared to its population and geographical size. By achieving the 12,000-kilometer target, the government aims to enhance connectivity, facilitate economic growth, and support the development of the new capital, Nusantara.
In addition to new railway projects, the government is also prioritizing the revitalization of existing infrastructure, including tunnels that are between 75 to 100 years old. This comprehensive approach to railway development underscores the government's commitment to modernizing transportation networks and supporting long-term economic objectives.
Proyek Kereta Api Lintas Negara
Pengembangan Infrastruktur IKN