Indonesia Explores Chinese And Russian Investment For Kalimantan Railway

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Indonesia Explores Chinese And Russian Investment For Kalimantan Railway

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Rail connectivity is increasingly being considered as a tool for opening new economic corridors and integrating resource-rich regions into national transport networks. Indonesia is exploring investment from China and Russia for the proposed Trans-Kalimantan railway, which would establish an entirely new rail network across the island.

Indonesia, August 2026 – Indonesia is advancing early-stage plans for a Trans-Kalimantan railway network, with the government engaging potential investors from China and Russia. President Prabowo Subianto has instructed the Transport Ministry and state railway operator KAI to accelerate work on the proposed project across Kalimantan.

The project would require railway infrastructure to be developed from the ground up, as Kalimantan currently has no operational railway network. Transport Minister Dudy Purwagandhi said KAI has prepared a roadmap, while Chinese and Russian investors have expressed interest and are currently assessing project costs before submitting proposals.

For the rail sector, the proposed network could provide a new transport backbone across one of Indonesia's resource-rich regions, supporting freight movement and improving connectivity between economic centres. However, the absence of an existing railway system means the project will require substantial planning covering alignment, infrastructure standards, rolling stock, operations and financing.

Indonesia is also developing plans for a Trans-Sumatra railway connecting Bakauheni in Lampung with northern Sumatra. The government expects the Sumatra project could be comparatively easier to develop because the region already has an established railway network. The sequence of the two projects will depend partly on investor interest and proposals.

The development highlights Indonesia's broader effort to expand rail infrastructure beyond Java and establish new national transport corridors. If investment proposals progress, the Trans-Kalimantan project could become a significant long-term infrastructure programme, while also demonstrating the growing role of international capital and technical partnerships in Indonesia's railway development.

Source: Jakarta Globe