Indonesia Borneo Railway Project Canceled

The 203-kilometer Borneo Railroad construction project that crosses North Penajam Paser Regency, West Kutai Regency and Balikpapan City worth IDR 53.3 trillion was canceled because Russian Railways quit.

"The resignation letter was submitted directly to the central government in 2020," said Head of the North Penajam Paser Regency Investment and One Stop Service (PMPTSP), Alimuddin in Penajam, Friday, March 4, 2022.

Around 140 hectares of land designated as the location for the Borneo Railway construction in the North Penajam Paser Regency. Approximately 70 hectares of land designated as the location for the Borneo Railway in Gunung Steleng and Buluminung villages have been acquired. The land that has been acquired in the Buluminung Industrial Estate or KIB in Penajam District, he explained, is for the construction of a train station.

The railway line construction is managed by PT Kereta Api Borneo, which is a joint venture between the East Kalimantan Provincial Government and the Russian railway company, namely Russian Railways. PT Kereta Api Borneo has also conveyed that the construction of railroads in the East Kalimantan region has been canceled, because the Russian-owned company quit.

However, according to Alimuddin, PT Kereta Api Borneo will still invest in North Penajam Paser Regency, but not in the railway sector. "Especially for railways, PT Kereta Api Borneo will evaluate it, but it will still invest in the North Penajam Paser area," he said.

The type of business, he added, did not yet disclose because PT Kereta API Borneo only conveyed that the investment plan would continue. The details of PT Kereta Api Borneo's business plan in the area nicknamed "Benuo Taka" are not yet known after the railway line construction project was canceled.