KAI to fund Gambir Station overhaul under rail reform plan

The government is preparing to transfer management of railway infrastructure assets to state-owned railway operator PT Kereta Api Indonesia (KAI) as part of broader reforms aimed at clarifying the separation between regulator and operator roles in the rail sector, Transport Minister Dudy Purwagandhi said.

The reform comes as the government advances plans to redevelop Jakarta's Gambir Station into a major multimodal transportation hub, with the project to be financed by KAI.

"We are moving toward a system in which the assets will be managed and handed over to KAI. We are currently formulating the regulations," Dudy told reporters on Wednesday.

The planned reform is intended to clearly distinguish the government's role as regulator from KAI's role as operator, he said.

"The most important thing is that our function as regulator becomes clearer and the operator's function becomes clearer," Dudy said, adding that the model could resemble arrangements in Indonesia's aviation and port sectors, where state-owned companies manage infrastructure while the government focuses on regulation.

The asset management reform is linked to plans to revitalize Gambir Station, one of Jakarta's busiest railway terminals. Director General of Railways Allan Tandiono said planning for the project was in its final stages.

"The planning is currently being finalized," Allan said.

Under the redevelopment plan, Gambir Station will be transformed into a rail-based transportation hub integrating long-distance trains with commuter rail services and other modes of public transport.

"We want the station to be connected with commuter trains and other services. There will be connectivity between long-distance and commuter rail services," Dudy said.

He said long-distance train operations would continue at Gambir after the redevelopment, adding that the station area has sufficient capacity to accommodate integrated services without causing excessive congestion.

According to Dudy, the project is part of President Prabowo Subianto's directive to modernize the station and improve transport connectivity in the capital.

Once completed, Gambir is expected to be connected through integrated transport links to the KRL Commuter Line, Light Rail Transit (LRT), the airport rail service and the Jakarta-Bandung high-speed railway.

Despite its expanded role, Dudy said Gambir would not replace Manggarai Station as Jakarta's main railway hub.

Instead, the station is envisioned as a flagship gateway for Indonesia's railway system.

"This is a national station — the face of Indonesian railways," he said.

Editing by Reiner Simanjuntak