Key insights and market outlook
Indonesia plans to expand its rail network to 12,100 km by 2030 across five major islands: Java-Bali (6,800 km), Sumatera (2,900 km), Kalimantan (1,400 km), Sulawesi (500 km), and Papua (500 km). This ambitious plan aims to boost infrastructure development and connectivity across the archipelago. The project is managed by BPI Danantara, indicating a significant investment in national transportation infrastructure.
Indonesia is set to significantly expand its rail network across the country, with plans to reach 12,100 km by 2030. The development will span five major islands: Java-Bali with 6,800 km, Sumatera with 2,900 km, Kalimantan with 1,400 km, and both Sulawesi and Papua with 500 km each. This extensive project is overseen by Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), highlighting the government's commitment to enhancing national infrastructure.
The expansion aims to improve connectivity and support economic growth across regions. By developing rail infrastructure in remote areas like Papua, the government is addressing regional development disparities. The project also reflects Indonesia's broader strategy to modernize its transportation network and facilitate the movement of goods and people across the archipelago.
The rail network expansion is expected to have a positive economic impact by creating jobs and stimulating local economies. It will also enhance logistical efficiency, making it easier to transport goods across the islands. Furthermore, the project underscores the government's focus on infrastructure as a driver of national development, aligning with long-term economic goals.
Railway Expansion Plan Announcement
Infrastructure Development Initiative