This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Kereta Cepat Jakarta -Surabaya perlu kajian matang
26 May 2025
By Ichsan Amin
Jakarta, ID – The development of the Jakarta-Surabaya High-Speed Railway must consider various aspects based on potential studies to ensure sustainability and maximise benefits.
Chair of the Road and Railway Transport Forum of the Indonesian Transportation Society (MTI), Aditya Dwi Laksana, stated that this project should be assessed in relation to macroeconomic conditions and public demand, as they form the primary drivers of necessity.
"This plan has been in place for some time and is part of the national railway master plan. However, its construction must take supply and demand into account, along with our economic conditions. Regardless of the investor—whether the government, the private sector, or China—the return on investment must be carefully considered," he told Investor Daily.
As an example, the Jakarta-Bandung High-Speed Railway (KCJB) required more than Rp100 trillion, with an expected return on investment over 40 years. This figure provides insight into the annual revenue the KCJB’s operator might generate for investors. "We know this is not an easy target, so the calculations must be precise," he said.
Given the costs of the KCJB, a rough estimate suggests that the Jakarta-Surabaya High-Speed Railway could be four to five times more expensive. Meanwhile, there remains considerable potential to develop demand for high-speed railway in Java by strengthening connectivity in several ways.
First, improving links with Soekarno-Hatta Airport to generate new demand from air travellers to and from cities across Java. Second, constructing high-speed railway stations in city centres using elevated tracks along existing railway corridors to reduce land procurement costs. Third, establishing high-speed railway networks in northern Java to support demand from the development of the Batang, Kendal, and Tuban Integrated Industrial Zones.
"Additionally, strengthening the network along southern Java is crucial, given the potential demand from tourism, the creative economy, and cultural hubs in Solo and Yogyakarta," Aditya explained.
He also emphasised the need to align high-speed railway operations with spatial planning to ensure harmony. "For example, protected rice fields, coastal erosion risks in northern Java, and the topography of the Bandung-Cirebon-Purwokerto corridor," he concluded.
Intermodal competition
In a separate discussion, transportation expert Djoko Setijowarno of Unika Soegijapranata in Semarang stressed that the Jakarta-Surabaya High-Speed Railway should not undermine other modes of transport. He noted that Java already has dense transport infrastructure, and adding another mode would intensify competition.
"If not carefully studied and balanced with existing transport modes such as buses, air travel, and long-distance rail, this project could lead to destructive competition," he said.
Djoko explained that railway track placement must be precise to complement other transport modes. He also warned against reducing air passenger volumes at established airports. "Particularly in Semarang, Yogyakarta, and Surabaya. We must ensure these airports remain viable. The feasibility of integrating Kertajati Airport into the railway route should also be explored," he said.
Djoko further argued that improving Java’s land transport connectivity does not necessarily require new mass transport modes. Instead, effective transport management is crucial. Java’s infrastructure is already heavily developed.
"What we need is better regulation and enforcement. Increasing feeder transport services is one example. There are also lower-cost transport alternatives compared to building the Jakarta-Surabaya High-Speed Railway. Public bus services, for instance, could be better organised with clear policies," he concluded.
Jakarta-Surabaya High-Speed Railway continues
National Economic Council (DEN) Chair Luhut Binsar Pandjaitan reaffirmed the continuation of the Jakarta-Surabaya High-Speed Railway project, which has been included in the National Railway Master Plan (Ripnas) under Ministerial Decree No. KM 296 of 2020.
"We discussed this earlier—our main issue is that regulations have not been finalised yet. But once that is resolved, we can begin joint studies," Luhut stated during a visit to China, as quoted by Antara.
Luhut noted that the project’s next step awaits a presidential regulation. "I have communicated with Deputy Finance Minister Thomas Djiwandono to oversee the regulation, as China is also waiting for it. Once everything is settled, joint studies can begin. It will certainly be more refined than the Jakarta-Bandung High-Speed Railway," he said.
Meanwhile, the government is still reviewing the feasibility of the Jakarta-Surabaya High-Speed Railway. Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) stated that the government must carefully evaluate the project’s effectiveness, considering whether it should be a high-speed railway or a medium-speed railway.
"We are assessing various options, including funding sources and past feasibility studies conducted for the Jakarta-Bandung project," he said.
The Ministry of Transport has confirmed the project will continue, ensuring it does not burden the national budget (APBN). Transport Minister Dudy Purwagandhi noted that inter-ministerial discussions and stakeholder input are still ongoing regarding funding mechanisms.
"If funding comes from the private sector, various creative financing schemes can be explored," he stated recently. He also highlighted that APBN funds in the transport sector should be prioritised for urgent programmes that support human resources and economic growth.
The Directorate General of Railways at the Ministry of Transportation is currently conducting parallel studies, including assessments of extending the Jakarta-Bandung High-Speed Railway to Surabaya and examining the feasibility of a semi-high-speed railway previously reviewed by Japanese investors.
Contact us
