KAI eyes Rp350 trillion investment for Trans Sumatra railway network

State railway operator PT Kereta Api Indonesia (KAI) is preparing a Rp350 trillion (US$19.6 billion) investment program to develop an integrated railway network across Sumatra, linking Banda Aceh in the north with Bandar Lampung at the southern tip of the island.

KAI President Director Bobby Rasyidin said the Trans Sumatra Railway project is a key part of the company's long-term infrastructure expansion strategy and follows government directives to strengthen connectivity and logistics across the island.

"We are developing a railway network in Sumatra to connect Banda Aceh and Bandar Lampung," Bobby told a parliamentary hearing on Wednesday.

The project is expected to require between US$20 billion and US$25 billion in investment, equivalent to about Rp350 trillion, to connect railway corridors from one end of Sumatra to the other.

As an initial phase, KAI will prioritize development of the 478-km Banda Aceh-Besitang railway link. The company is currently preparing the basic design for the project.

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Currently, several railway networks in Sumatra operate as separate systems, including the Bandar Lampung-Palembang corridor, the Bandar Lampung-Lubuklinggau route, and networks in North Sumatra and Aceh. The Trans Sumatra Railway project aims to integrate these corridors into a continuous north-south network.

The project forms part of KAI's 2026-2030 corporate transformation roadmap. Under the plan, the company aims to reactivate approximately 726 km of dormant railway lines in West Sumatra, North Sumatra and Aceh, including the Padang Panjang-Bukittinggi, Sawahlunto, Naras-Sungai Limau, Banda Aceh-Sigli-Lhokseumawe and Langsa-Besitang corridors.

KAI also plans to construct about 1,110 km of new railway lines included in the National Railway Master Plan, including the Rantau Prapat-Dumai, Duri-Pekanbaru, Pekanbaru-Rengat, Rengat-Jambi, Kertapati-Tarahan-Bakauheni and Lubuklinggau-Bengkulu routes.

In addition to passenger transport, the company plans to expand coal logistics infrastructure through development of the Tanjung Enim Baru-Tarahan II corridor. The project includes new tracks, bypass lines and capacity upgrades covering about 313 km to support coal transportation from mining areas to ports.

KAI expects the railway expansion program to improve inter-regional connectivity, facilitate freight transportation and support economic growth across Sumatra.

Editing by Alexander Ginting