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Rail-based transportation may save 100 trillion: Luhut Pandjaitan

Tempo - August 19, 2020

Hendartyo Hanggi, Jakarta – Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said the government supported the development of rail-based mass transportation.

"With that, we can save Rp40 trillion from the operation of motorized vehicles and Rp60 trillion from the travel time," said Luhut during a Tempo's Webinar on transportation held Wednesday, August 19.

He added that the figure was equal to four percent of the entirety of Gross Domestic Product of Jakarta, Bogor, Depok, and Bekasi or Jabodebek areas. According to the minister, the use of public transport significantly curbs congestion as well.

Based on data presented by state-owned railway operator PT KAI, the number of commuters bound for and leaving Jakarta reached 336 million in 2019.

Additionally, the government is determined to build a railway network in Sulawesi, Kalimantan, and Bali. Luhut underlined that building road infrastructure, either in the form of domestic investment or government-to-business partnership cooperation (KPBU), is necessary.

The development of land transportation, in general, would provide multiplier effects on various sectors, which would boost national economic growth.

"Integrated connectivity of land, sea, and air transportation will help the efforts to equalize the national economy for such a large country as Indonesia, which is composed of more than 17,500 islands," Luhut Pandjaitan remarked.

Source: https://en.tempo.co/read/1377419/rail-based-transportation-may-save-rp100tn-luhut-pandjaitan