Private Sector Encouraged to Involve in Surabaya High-Speed Train Project

KBRN, Jakarta: Transportation Minister Dudy Purwagandhi is advocating an increase in private sector involvement in infrastructure development, including in the Surabaya high-speed train project.

He such involvement is highly encouraged because the construction of the Jakarta-Bandung to Surabaya high-speed train project does not use the State Budget (APBN) funds.

"We are opening up the possibility for the private sector involvement because it does not burden the budget. So, we are very open to creative financing in any form, but on the condition that it does not burden our APBN," Dudy Purwagandhi said in Jakarta recently, as reported by rri.co.id.

Dudy stated that the government is currently prioritizing the allocation of the APBN for other programs deemed more urgent for the community. As a result, he hopes that transportation infrastructure projects can avoid straining the state budget by maximizing opportunities for private sector involvement.

"The 2025 APBN is focused on activities that are more urgent for the future of our nation. Some may disagree, but for me personally, preparing the younger generation is more important," said Dudy.

Meanwhile, Transportation Ministry's Railways Director General, Risal Wasal, mentioned that two studies are currently being conducted simultaneously: one focuses on extending the Jakarta-Bandung high-speed train to Surabaya, carried out by an operator, the other is the Jakarta-Surabaya semi-high-speed train, being studied by Japanese investors.

"If it is fully funded through investment, it could be carried out through assignment or direct appointment. However, if we are talking about unsolicited public-private partnerships, we will designate them as the initiators, and it will go through a bidding process," said Risal. ***