Transportation Ministry Explores Investment for Jakarta-Surabaya Semi High-Speed Train

Tempo
03-07

TEMPO.CO, Jakarta - The Transportation Ministry is exploring the potential revival of the semi high-speed train project connecting Jakarta and Surabaya. This project was previously designated as a national strategic project (PSN) but was subsequently removed in February 2024

"In accordance with the Minister's direction, we are trying to reassess, to revive the Jakarta-Surabaya semi high-speed train. Whether the route will pass through the center, north, or south," said Director General of Railways of the Transportation Ministry, Risal Wasal, to reporters in Jakarta on Wednesday, March 5, 2025.

Risal also said that the project would be pursued with full private sector investment or through a Government Cooperation with Business Entities (KPBU) scheme. He emphasized that the project would not rely on the State Revenue and Expenditure Budget (APBN).

"If it's a full investment, it could be an assignment or direct appointment. But if it's an unsolicited KPBU, we will appoint them (private sector) as the initiator, and it will be auctioned," Risal explained.

Transportation Minister Dudy Purwagandhi has indeed expressed openness to private sector investment in the train project. He hopes that this approach will ensure the continued development of transportation infrastructure despite the ministry's budget constraints. This is particularly relevant following President Prabowo Subianto's directive to reduce the State Budget and Regional Budget, which resulted in the Transportation Ministry's budget being cut from Rp31.45 trillion to Rp17.73 trillion this year.

"Creative financing, we are very open to any form [of funding] as long as it does not burden the State Budget," Dudy stated.

Previously, Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan emphasized the need to enhance transportation assets, especially land transportation, to stimulate economic growth. "We have many opportunities. These are the opportunities we must seize," Luhut remarked earlier this month.

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