BEIJING, November 2025 — PT Kereta Api Indonesia (KAI), the nation's state-owned railway operator, is poised to significantly expand its rail services beyond the island of Java, marking a pivotal moment for infrastructure development across the archipelago. This strategic move is set to enhance national logistics and connectivity.

The expansion is slated to commence in 2026, following a directive from President Prabowo Subianto for implementation within his first term. KAI's plans encompass developing new railway networks in Sumatra, Kalimantan, and Sulawesi, aiming to bolster the movement of key commodities such as palm oil, rubber, coffee, tin, and nickel.

This initiative is expected to transform regional economies by strengthening supply chains and improving transportation efficiency. Notably, the "Logistics Railway Infrastructure in East Kalimantan" has been designated a National Strategic Project, signaling its importance. KAI also intends to modernize existing lines in Java and extend the current Sulawesi railway to North Sulawesi.

To support these large-scale projects, KAI is actively exploring financing options, including discussions with Chinese transport authorities for developments like the greenfield railway network planned for Kalimantan, which will be built entirely from scratch.

This ambitious expansion by KAI underscores Indonesia's commitment to advancing its rail infrastructure, crucial for economic growth and regional integration in Southeast Asia.

Source: ANTARA News