Jakarta (ANTARA) - The Transportation Ministry invites investors from partner countries and the private sector to develop the railway industry in Indonesia to help realize the railway construction target in the 2020-2024 National Medium-Term Development Plan (RPJMN).

"Even to this day, we are still striving to achieve the railway construction target in the 2020-2024 National Medium-Term Development Plan (RPJMN), with the target of railway construction reaching 7,451 km by 2024," Director of Railways Rolling Stock Djarot Tri Wardhono stated here on Friday.

According to Wardhono, to meet the target, the ministry's Directorate General of Railways has prepared regulatory tools to create an accommodative investment climate.

"Law No. 23 of 2007 on railways has mandated that the railway sector must be developed openly and with multiple operators. Hence, we encourage potential partners to participate in this sector," he affirmed.

Furthermore, he underlined three schemes that can be implemented by strategic partners in developing Indonesian railways.

Firstly, he said, the partnership can be organized within the framework of trade cooperation.

"This trade cooperation can be implemented through trade in raw materials and railway rolling stocks," he explained.

The second is the infrastructure funding scheme, wherein the required amount of funding to realize the 2030 National Long-Term Development Plan (RPJPN) reached US$65 billion, and the third scheme is cooperation in research and development.

Wardhono said the efforts to involve the private sector through these investment schemes align with the paradigm that prioritizes Public Private Partnerships (PPP).

To support this, PT Penjaminan Infrastruktur Indonesia (PII) has been established to provide guarantees for the PPP schemes.

PT Penjaminan Infrastruktur Indonesia is a state-owned company, under the auspices of the Finance Ministry, established to support the acceleration of infrastructure provision in Indonesia through the Public Private Partnership schemes.

Hence, Wardhono convinced strategic and potential partners to not harbor concerns over the worthiness of investing in Indonesia.

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Translator: Adimas P, Kenzu T
Editor: Sri Haryati
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