Indonesia Explores Foreign Investment For 2,772-Kilometre Trans-Kalimantan Railway

Indonesia, September 2026 — Indonesia is considering major railway development in Kalimantan as part of its longer-term transport planning through 2045. The proposed Trans-Kalimantan network would connect different parts of the resource-rich island, including areas around Nusantara, Indonesia’s new capital region, which currently has no operational public railway network.

The planned network would extend approximately 2,772 kilometres. Transportation Minister Dudy Purwagandhi said the government was exploring potential foreign investment, with China and Russia reported to have expressed interest. The project remains at an early stage, with no investment agreement yet concluded.

Chinese participation is being considered partly because of the country's experience across different railway environments and its ability to provide engineering, technology, financing and construction capabilities. Analysts cited by the South China Morning Post noted that Kalimantan presents particular challenges, including high humidity, difficult terrain and potentially unstable ground conditions.

Indonesia's experience with the 142.8-kilometre Jakarta–Bandung high-speed railway, known as Whoosh, is also relevant to future discussions. While the project demonstrated China's railway construction capabilities, analysts highlighted its cost overruns, delays and financing pressures as factors that could influence how Jakarta approaches risk allocation and commercial terms for future projects.

The Trans-Kalimantan proposal therefore remains subject to feasibility, financing and implementation considerations. Its development would represent a significant expansion of Indonesia's rail footprint beyond Java and Sumatra, while also illustrating the complexities involved in delivering large-scale railway infrastructure across geographically challenging regions.

Source: South China Morning Post