Railway industry in Indonesia - statistics & facts
The Indonesian railway system, built in 1867 under Dutch colonial rule, reached regions outside Java and was used both for public transport and for transporting agricultural produce. Since independence, the government has taken over its management, until it was fully nationalized in 1971. The state-owned company Kereta Api Indonesia (KAI) has revived rail transport in recent years, reactivating a considerable number of lines. However, the country's geography does not favor railway expansion, and to date, the network is concentrated only on Java and Sumatra. As of 2022, the operational rail network covered around 6.64 thousand kilometers, serving about 277 million annual passengers, and carrying around 58.1 million tons of freight. The country is currently expanding its network with the ambition of reaching 10,524 kilometers by 2030, initiating an era of transformation in the Indonesian transport sector.
State-owned KAI, along with its subsidiaries KAI Commuter and KAI Bandara, oversees most rail operations. They handle the vast majority of the country's passenger transport and freight transport. KAI's strategic investments, which range from e-ticketing to airport rail links, are indicative of a broad national vision for progress in national transport. Infrastructure development is aimed at responding to the growing demands of a rapidly expanding population. The government's ambitious targets, outlined in the National Railways Master Plan to 2030, include major track extensions and fleet expansions to meet future transport needs.
Funded by Chinese investment as part of the Belt and Road Initiative, this transformative initiative demonstrates Indonesia's commitment to modernizing its transport infrastructure. Plans to extend the Whoosh railway to Surabaya are already underway, which would further improve links across Java Island. For the future, Indonesia is looking to develop the rail infrastructure on Sumatra and Kalimantan. Projects such as the Trans-Sulawesi Railway and the Trans-Sumatra Railway would also improve regional connectivity. Furthermore, collaborations with Chinese partners continue to develop, with projects such as KAI Commuter's partnership with CRRC Sifang for new trains and plans for an automated rail transport system in the future capital of Nusantara.
Indonesia’s railway industry landscape
The Indonesian rail network is gradually becoming an essential transport means for passengers. A large proportion of railway passengers, more than 272 million, are concentrated on Java, with a significant share in the Greater Jakarta area. Indeed, commuter trains account for by far the largest share of rail passengers in the country. In the rest of the country, the rail system on the island of Sumatra is mainly freight-oriented. It focuses mainly on the transport of coal, pulp, cement, and palm oil. This has enabled the volume of freight transported on the island to reach a total of around 50 million metric tons in 2022, which represents the largest share of rail freight transport in the country.State-owned KAI, along with its subsidiaries KAI Commuter and KAI Bandara, oversees most rail operations. They handle the vast majority of the country's passenger transport and freight transport. KAI's strategic investments, which range from e-ticketing to airport rail links, are indicative of a broad national vision for progress in national transport. Infrastructure development is aimed at responding to the growing demands of a rapidly expanding population. The government's ambitious targets, outlined in the National Railways Master Plan to 2030, include major track extensions and fleet expansions to meet future transport needs.
Southeast Asia's first high-speed train
Indonesia has taken a major step forward in the development of its infrastructure with the launch, in October 2023, of Southeast Asia's first high-speed rail line between Jakarta and Bandung. This line, called "Whoosh" (Waktu Hemat, Operasi Optimal, Sistem Hebat) reaches an operating speed of 350 kilometers per hour. With an average journey time of 45 minutes, compared with three hours before its opening, it ranks among the fastest commercial rail networks worldwide. The project, designed by the Indonesian-Chinese joint venture Kereta Cepat Indonesia China (KCIC), reflects President Joko Widodo's (Jokowi) commitment to reducing traffic congestion and boosting economic growth. Passenger demand has been high since its opening, with more than 18,000 passengers per day. This new line is attracting interest from passengers, as shown by a survey conducted in November 2023, in which more than 92 percent of respondents declared being interested in trying out the high-speed train.Funded by Chinese investment as part of the Belt and Road Initiative, this transformative initiative demonstrates Indonesia's commitment to modernizing its transport infrastructure. Plans to extend the Whoosh railway to Surabaya are already underway, which would further improve links across Java Island. For the future, Indonesia is looking to develop the rail infrastructure on Sumatra and Kalimantan. Projects such as the Trans-Sulawesi Railway and the Trans-Sumatra Railway would also improve regional connectivity. Furthermore, collaborations with Chinese partners continue to develop, with projects such as KAI Commuter's partnership with CRRC Sifang for new trains and plans for an automated rail transport system in the future capital of Nusantara.
