Rail transport in Indonesia comprises an operational mass rapid transit (MRT) system, two light rail transit (LRT) systems, and a commuter rail system. The MRT and LRT systems commenced operations in 2019, although the projects were announced long back.

The country plans to invest $455 billion in the next few years on the development of its infrastructure systems (including railways), which will be primarily funded by China and Japan. Currently, the LRT and MRT systems are being extended, a new high speed rail (HSR) system is being constructed and the existing commuter rail system is being modernised.

Operational network 

Jakarta MRT

The MRT system, which commenced operations in 2019, had been under construction since 2013. PT MRT Jakarta, a government-owned company, is the developer of the system. Table 1 provides details the operational network.

Jakarta city LRT

The provincial government of Jakarta city has constructed the LRT within the city. Section 1 of Line 1 commenced operations in June 2019. It spans 5.8 km from Velodrome to Kelapa Gading Mall and covers six stations. The LRT has been developed at an estimated investment of IDR 5.8 trillion ($412 million). PT KAI operates the LRT with funding support from the Indonesian government .

A South Korean consortium consisting of the Korea Rail Network Authority, Daea TI Company Limited, Samjin Company Limited, Woojin Industrial Systems, and LG CNS constructed the railroad system for the section. Their scope of work included installation of the signalling and power systems and the screen doors, and supervision of inspection activities. Korean companies Hyundai Rotem and Woojin Industrial Systems have secured the contract to supply a 16-car train. PT Wijaya Karya, a state-owned company, constructed the roadbed.

Palembang LRT

The LRT system spans 23.4 km from the Sultan Mahmud Badaruddin II (SMB II) International Airport to the Jakabaring Sports Complex, covering 13 stations (SMB II Airport, Asrama Haji, Telkom,  RSUD,  Polda, Demang, Palembang Icon, Dishub, Cinde,  Ampera,  Gubernur Bastari,  Jakabaring, and  Ogan Permata Indah). It is owned and operated by PT Kereta Api Indonesia and commenced operations in August 2019. It was developed at an estimated investment of IDR 10.9 trillion ($755 million), fully financed by the state government of South Sumatra. Table 2 provides details of the LRT system.

PT Waskita Karya commenced construction on the line in 2015. PT Len Industri secured a contract from PT Waskita Karya to deploy signalling systems, automatic fare collection machines, telecommunication network, and electricity infrastructure.

PT Industri Kereta Api has supplied the light rail vehicles (LRVs) for the system. Each LRV is 12 metres long, 2.6 metres wide and 3.6 metres high. It can accommodate 534 passengers and operate at a maximum speed of 80 km per hour.

Commuter rail

The commuter rail network spans 230 km and covers 105 stations on six routes. PT Kereta Commuter Indonesia (KCI) operates the electric commuter rail in the Jakarta metropolitan area. PT KCI is under the ownership of the national railway operator, PT KAI.

In 2018, 336.35 million passengers travelled on the system. Table 3 provides details of the current commuter rail network in Jakarta.

Upcoming network

Jakarta MRT

The metro system is planned to be expanded at an estimated investment of $40 billion. As of December 2019, MRT Jakarta is yet to finalise financiers to help fund the expansion. The master plan mentions expanding the network to 230 km.

The system will comprise two corridors (North-South and East-West), which will together span over 93 km.

Jakarta metropolitan area LRT

The metropolitan area LRT will be developed in two phases at an estimated investment of $1.8 billion. Pt Adhi Karya is constructing Phase I of the LRT. PT Kereta Api Indonesia (Persero)/Indonesian Railways Company will operate the line.

There will be five routes, which will together span 83.6 km. Table 5 provides details of the planned metropolitan area LRT system.

As of October 2019, work on Phase I was around 67 per cent complete.

Bali LRT

In January 2020, the Korea Overseas Infrastructure and Urban Development Corporation and the Korea Rail Network Authority signed a memorandum of understanding (MoU) with the Government of Indonesia-owned Nindya Karya to develop an LRT system in Bali.

The LRT system will comprise one line which will span 4.78 km (fully underground) and cover four stations. The line will be developed at an estimated investment of $400 million (IDR 5 trillion).

Construction is expected to begin within three months of the signing of the MoU and is expected to be completed by 2022.

Jakarta-Bandung HSR

A 142 km (62 km underground) HSR project is being developed to connect Jakarta and Bandung cities. It is expected to commence operations in 2021. Indonesia’s Ministry of Transportation is the project developer and PT Kereta Cepat Indonesia-China will be the operator.

Construction on the project began in September 2019. Travel time between the two cities will be reduced from 3 hours to 45 minutes.

It will be developed at an estimated investment of $6 billion, of which the China Development Bank is expected to fund $4.5 billion.

The project is a part of China’s Belt and Road Initiative.

Modernisation of commuter rail network

Jakarta is expected to become the largest city in the world by 2030; it is already the most congested city. The commuter rail network is under severe pressure. The ageing operational fleet, complexities in operations, and incompatibilities in infrastructure have necessitated the need for the upgradation and modernisation of the system.

Multilateral funding – A key driver for transit development

Multilateral funding has played a key role in the development of rail systems in the country.

Jakarta MRT Phase I, which recently commenced operations, secured an IDR 16 trillion loan from the Japan International Cooperation Agency (JICA), which also allocated an IDR 9.4 trillion loan for Phase II. The Jakarta-Bandung HSR project is primarily funded by loans through China.

Besides JICA, the Asian Development Bank and the Asian Infrastructure Investment Bank are the other multilateral agencies that have expressed interest in funding rail infrastructure projects in the country.

Need for the development of rail systems 

The major cities in the country are dealing with congestion issues.

For instance, Jakarta has a population of 10 million and the metropolitan area has a population of 30 million. The currently operational bus rapid transit (BRT) system has been unable to cater to the city’s transportation needs and hence reliance on private transport has increased significantly, especially in the last decade. Congestion in the city has emerged as a major issue due to the increasing use of private transport. The average per hour speed of vehicles during peak hours is as low as 10 km per hour. This congestion is estimated to cost around $6.5 billion to the economy in 2020. Until 2019, only 20 per cent of the population used the operational BRT and commuter rail systems, which necessitated the need for the development of more rail systems in the country.

With rail expansion, the major cities are expected to develop into important business hubs.

Conclusion

Lack of proper planning and poor project management have led to delays in several transit projects in the country. Several MRT and LRT projects, and even the HSR project, have been delayed due to improper planning and implementation. Land acquisition bottlenecks and cost overruns have had a major impact on project completion in the past.

Further, multilateral funding is also being criticised as several economists think it is a debt trap for the nation. The borrowing countries are expected to take leverage of the country’s economy. Japan’s investment in Indonesia has increased sharply since the 1970s, a development that drew sharp criticism and which compelled Japan to rebrand itself from a country doing business with Indonesia to a country serving the Indonesian people. The Jakarta-Bandung HSR project is the first in-depth cooperation project between China and Indonesia. Its success is expected to boost bilateral cooperation and enhance ties between Jakarta and Beijing.

The progress of these planned projects is yet to be ascertained. The project developers are ensuring the use of the best technology, the best management, and the best financiers for the timely completion of these projects.