Indonesia weighs Chinese investment for 2,772km Kalimantan railway
Indonesia is exploring foreign investment for a proposed 2,772km railway network across Kalimantan, with China and Russia expressing interest. Analysts see Chinese firms as technically capable but warn that the financial problems surrounding the Jakarta-Bandung high-speed line could make negotiations cautious.
Indonesia is considering Chinese investment to help build a 2,772km railway network across Kalimantan, the Indonesian portion of Borneo. Transportation Minister Dudy Purwagandhi said the government was exploring foreign investment for the Trans-Kalimantan project and that China and Russia had expressed interest. The network is part of long-term development plans through 2045.
Kalimantan is rich in natural resources and contains Nusantara, Indonesia’s planned new capital, but it does not have an operating public railway network. Analysts said China could offer financing, engineering, technology and personnel as part of an integrated system. The proposed project would face difficult terrain, humidity, unstable ground and substantial logistical challenges.
One analyst described it as high risk in geographical, technical and financial terms. Indonesia is expected to negotiate cautiously because of the financial strains associated with the 142.8km Whoosh high-speed railway between Jakarta and Bandung. The line experienced cost overruns and delays and accumulated billions of dollars in debt.
China has also reduced the scale of some overseas infrastructure financing under its Belt and Road Initiative. Meanwhile, plans for a US$20 billion underground metro in Bali were abandoned, with the province instead studying an electric autonomous rapid-transit system.
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