Indonesia eyes deeper rail connectivity

Indonesia is continuing its drive to expand its national railway network in order to boost the economy and promote more inclusive economic growth. This comes amid calls for such efforts to be accompanied by adequate development of intermodal transport systems with private sector participation.

A better-developed intermodal transport system will strengthen connectivity and promote economic development in various regions of Indonesia, experts said.

"In time, urban and intercity railway services (in Indonesia) will be needed for both passengers and freight," Danang Parikesit, professor of transportation studies at Gadjah Mada University in Yogyakarta, said.

He cited the country's economic transformation, the growing linkages among industrial zones, and the development of high-potential provinces as key drivers.

Parikesit said that while Indonesia has seen significant development in its national rail transport system over the past decade, building long-distance railway lines requires the right financing structure and coherent regional development plans.

He said that among the significant achievements made are the development of urban railway systems and railway access to airports, the coal logistics railways in resource-rich South Sumatra, and the Jakarta-Bandung "Whoosh" fast train.

Arief Anshory Yusuf, a member of Indonesia's National Economic Council (DEN) and a senior professor at Padjadjaran University in Bandung, stressed the role of railway systems in distributing economic growth across Indonesia.

"Railway development can play an important role in future economic growth, as railways increase productivity through agglomeration," Anshory said in a speech on July 28 at the Railway Tech Indonesia conference in Jakarta.

Indonesia currently has about 6,900 kilometers of railway lines across the islands of Java, Sumatra, and Sulawesi. The government plans to expand the network to 10,500 kilometers by 2030 and 14,000 kilometers by 2045, extending rail coverage to two other major islands — Kalimantan and Papua.

Jumardi, director of railway safety at the Directorate General of Railways of Indonesia's Ministry of Transportation, said the planned railway network expansion aims to encourage people to use trains and other forms of mass transportation instead of private cars.

"For the existing railway network, we have begun modernization efforts," Jumardi, who goes by one name, said. "The technologies are available and have already been used in railway systems in other countries, but the constraint for us is the cost."

The official added that the majority of funding for railway projects, as well as other infrastructure projects, has so far come from the state budget.

The Indonesian government has promoted public-private partnership schemes for railway projects, but the involvement of the country's private investors has remained limited, with state-owned companies and foreign investors playing major roles.

Most participating private firms are large residential property developers involved in projects near railway stations. The reluctance of Indonesia's private investors to participate in railway projects in the country is mainly due to the high capital requirements, the long investment payback period, and land acquisition issues.

The most prominent railway projects in Indonesia involving significant foreign participation are the Jakarta-Bandung "Whoosh" high-speed railway and the Greater Jakarta commuter rail network, both developed with China's involvement, as well as Jakarta's mass rapid transit and light rail transit systems, for which Japan has supplied the trains.

The MRT and LRT lines help reduce pollution in the Jakarta Metropolitan Area, one of the world's most congested and polluted metropolitan regions.

Indonesia also needs to develop railways for freight transport, given the long queues of logistics vehicles on its roads, according to Tay Yong Haur, executive director of Recogine Group, a Malaysia-based information and communications technology company specializing in intelligent transportation systems and smart mobility.

Hana Wardani Puruhita, a senior lecturer at the Indonesian Railway Polytechnic in East Java, said that quality human resources development is also crucial in developing a multimodal transport system. She said that her institute has established cooperation with the China Academy of Railway Sciences to improve the quality of its students and alumni.

Prime Sarmiento in Hong Kong contributed to this story.

Leonardus Jegho is a freelance journalist for China Daily.