Private Parties are Expected to Invest in the Train Transport Sector

By : Herry Barus And Aldo Bella Putra | Sunday, July 22 2018 - 21:30 IWST

Menteri Perhubungan Budi Karya Sumadi
Menteri Perhubungan Budi Karya Sumadi

INDUSTRY.co.id - Jakarta - Minister of Transportation Budi Karya Sumadi said the government invites private sector to jointly develop railway transportation as a much needed mass transportation in Indonesia.

"A number of national and foreign banks are interested in funding the sector, which shows that rail transportation is very profitable," said Minister of Transportation Budi Karya to the press after opening the 3 rd National Working Meeting of the Indonesian Railways Society (Maska) in Jakarta on Saturday (21 / 7/2018)

Minister of Transportation said that the development of railway transportation infrastructure does require a huge cost and a lot of siphoning of the state budget, so it needs to find solutions for development.

Meanwhile, he said, the government remains consistent to continue building effective mass transit and assessing the train is the solution.

"For the long term, rail will become adequate mass transit to reduce traffic density on highway," said Budi Karya.

He pointed out, the rapid development of Jakarta-Surabaya railway which is currently the government's attention, attracted Japanese private sector to be involved.

Despite the involvement of foreign private sector, the Minister of Transportation said that the government is still eager to share local railway parts of vwsar using domestic products.

"Likewise the workers, the government wants to involve many local workers so that many Indonesians are working," said Minister of Transportation.

Budi Karya said that the railway development offered to private is not only based on Java Island and for human transportation only, but also offered outside Java and logistic transportation.

He asserted that even though the private sector is involved in building a train but the government remains professional and does not want to doekte or just follow.

"I am sure and watch if the government is still to follow the rules that apply in Indonesia and certainly does not harm the state finances," he said.

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