Gotrade News - Indonesia's President Prabowo Subianto has allocated approximately Rp4 trillion from the state budget to upgrade around 1,800 railway crossings nationwide. The decision follows a fatal collision between a long-distance train and a commuter line at Bekasi Timur Station on Tuesday (28/04).
--- - The Rp4 trillion allocation comes from Indonesia's state budget (APBN), administered through the Transportation Ministry. - State-owned enterprises including KAI will contribute additional funding to expand the program's scope. - The plan addresses long-standing safety risks at colonial-era at-grade rail crossings nationwide. ---
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed the funding source remains the state budget. The program will be executed through the Transportation Ministry, which oversees national rail infrastructure.
State-Owned Enterprises Regulatory Body head Dony Oskaria stated that the Rp4 trillion will be combined with existing budgets at state rail operator KAI. Indonesian SOEs will participate in financing the crossing upgrades according to their respective capacity.
Dony added that the upgrade program had already been part of the 2026 government work plan before the accident. The Bekasi Timur incident has accelerated execution of work that was previously scheduled across the year.
Presidential Secretary Prasetyo Hadi noted that many crossings date back to Indonesia's Dutch colonial era and have not been upgraded. Most still consist of direct intersections between roads and rail tracks without adequate safety controls.
The planned solutions include flyover construction at high-traffic intersections and posted guards at others. The choice between options will depend on local geography and rail traffic density at each location.
The collision involving long-distance train Argo Bromo Anggrek and a commuter rail line at Bekasi Timur caused fatalities and dozens of injuries. The incident triggered a comprehensive review of national rail safety standards.
Upgrading 1,800 at-grade crossings has now become a transport-safety priority for the Prabowo administration. The Transportation Ministry will lead implementation across regions and operational coordination.
Construction firms and SOE contractors stand to benefit from execution of the program. The Rp4 trillion budget is expected to drive demand for cement, steel, and construction services through 2026 and 2027.
Equity investors will watch how quickly infrastructure spending translates into earnings for construction and materials companies. Sustained execution will also signal the administration's commitment to transport safety reform.
