The Government of Indonesia has announced plans to invest approximately IDR1,200 trillion to expand and revive its railway network by 2045, with the objective of developing around 14,000 km of new and reactivated railway lines across the country. The programme forms part of Indonesia’s Vision 2045 strategy and focuses primarily on improving rail connectivity outside Java, including in Sumatra, Kalimantan and Sulawesi.
According to Indonesia’s Coordinating Ministry for Infrastructure and Regional Development, the programme is expected to require annual investment of approximately IDR60-65 trillion over the next two decades. Funding is expected to come from a combination of national and regional government budgets, public-private partnerships (PPPs), domestic private investment, foreign investment and international cooperation initiatives.
The expansion plan aims to address significant railway infrastructure gaps across the archipelago. Sumatra currently operates approximately 1,871 km of railway lines but requires an additional 7,837 km to meet future connectivity needs. Kalimantan currently has no operational railway network and is estimated to require at least 2,772 km of new rail infrastructure, while Sulawesi has 109 km of railway and requires a further 3,284 km to strengthen regional mobility and economic integration.
Development will be implemented in phases, combining medium- and long-term projects with early priority initiatives. One project under consideration is a railway connection between Banda Aceh and Besitang in North Sumatra to improve strategic regional connectivity. The government also plans to pursue innovative financing mechanisms while strengthening domestic industrial capabilities to support sustainable railway development.