INVITE FELLOW COUNTRIES TO DEVELOP THE INDONESIAN RAILWAY SECTOR, DJKA: WE ARE ALWAYS OPEN AND READY TO COOPERATE
Jakarta (08/09) – The development of the railway sector in Indonesia, especially urban railways, will prioritize cooperation schemes with international partners and local partners to maximize development outcomes. This was conveyed by the Minister of Transportation Budi Karya Sumadi at a webinar entitled "Development Strategy Urban Mass Transport Railway in Indonesia" on Wednesday (08/09).
The webinar, which was held in commemoration of National Transportation Day (HARHUBNAS) 2022, was broadcast live through the Ministry of Transportation's YouTube channel. The event was also attended by Director of Railway Facilities Djarot Tri Wardhono, World Bank Lead Energy Specialist and Infrastructure Program Leader for Indonesia and Timor Leste Claudia Vasquez, Manager in Charge of Europe and US Markets Development JR Company Kazuhiko Aida, Vice President Urban Platform Alstom Paloma Moran, Senior Railway Specialist - World Bank Martha Lawrence as resource person.
In his presentation, Djarot said that the involvement of development partners from fellow countries in realizing reliable Indonesian railways was vital. The reason is, currently, the need for railway development is quite significant. "To this day, we are still trying to pursue the 2020-2024 National Medium-Term Development Plan (RPJMN) target to achieve the 2024 railroad development target of 7,451 Km's and TIQ of 94%," continued Djarot.
Djarot said in order to meet the development target, DJKA has prepared a set of regulations to create an accommodative investment climate. "Law Number 23 of 2007 concerning Railways has mandated that the railway sector must be open and multi-operated. Therefore we encourage potential partners to participate in this sector," continued Djarot.
Djarot added that at least three schemes that strategic partners can carry out in contributing to building Indonesian railways. First, partnership relations can be held within the framework of trade cooperation. "This trade cooperation can be carried out through trade in raw materials and railway facilities which has also been carried out with various foreign partners," said Djarot.
Second, Djarot said that the infrastructure funding scheme is also a very strategic form of partnership to be able to collaborate in building Indonesian railways. Meanwhile, another cooperation scheme offered by Djarot to strategic partners from fellow countries is through research and development cooperation.
Regarding the infrastructure financing scheme, Djarot said that the funding needed to realize the 2030 National Long-Term Development Plan (RPJPN) reached USD 65 billion. "We are targeting the amount of financing that needs to be met as much as 64% from private investment and 36% from the state budget," explained Djarot.
Efforts to involve the private sector through the investment scheme align with the development paradigm that prioritizes cooperation with Business Entities through Public Private Partnership (PPP). To support this, PT Penjaminan Infrastruktur Indonesia has been established as an extension of the Government in providing guarantees for the PPP development scheme. Therefore, Djarot conveyed to strategic and potential partners not to worry about the feasibility of investing in Indonesia.
Djarot's statement was supported by the explanation given by the Manager in Charge of Europe and US Markets Development JR Company Kazuhiko Aida. Aida said Japan has established good cooperation with Indonesia in the railway sector. "One of our collaborative projects that is currently operating and is in the stage of further development is MRT Jakarta," said Aida.
In addition to MRT Jakarta, Aida explained that Japan, through JR East, has also collaborated with Indonesia in the railway sector in the form of human resource training (HR) in railways, both technical human resources and service human resources. "Japan is very open and waiting for other collaboration opportunities so that we can contribute to advancing railway technology in Indonesia," Aida translated from English. (HJA/MRN)
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