Private Sector Urged to Join Jakarta-Surabaya High-Speed Rail

KBRN, Jakarta: Indonesia's Minister of Transportation, Dudy Purwagandhi, is encouraging private sector involvement in infrastructure initiatives, particularly the Jakarta-Surabaya high-speed train project. He stated that involving private investment would alleviate the burden on the state budget during construction.

"We are opening up the possibility of the private sector because it does not burden the (state) budget. So our creative financing is very open in any form, but with the note that it does not burden our state budget," said Purwagandhi.

Dudy highlighted that the Indonesian government aims to allocate the state budget to programs deemed more essential for the public. He emphasized the importance of developing transportation infrastructure without adding financial strain on the state budget, thereby maximizing opportunities for private companies.

"The 2025 State Budget focuses on activities that are more important for the future of our nation. Maybe some disagree, but I personally (see that) preparing the younger generation is more important," he said.

In addition, the Ministry's Director General of Railways, Risal Wasal, mentioned that two studies are currently being conducted in parallel. These studies involve the extension of the Jakarta-Bandung high-speed train to Surabaya and a separate higher-speed train project in Jakarta being evaluated by Japanese investors.

"If later full investment, it can be an assignment or direct appointment. But if we talk about an unsolicited joint venture between government and private companies, we will appoint them as the initiator, and it will be auctioned," Risal explained.

(Original article by Aditya Prabowo on RRI.co.id)