The railway project mainly for the transport of coal from Tanjung Enim to the seaport of Tanjung Api-api in South Sumatra has long been delayed.
Implementation of the project would be facilitated by simplifying the licensing procedure, head of investment division of the railway directorate general Prasetyo B told reporters before a meeting with South Sumatra Governor Alex Noerdin here on Tuesday.
Prasetyo said the government encourages immediate implementation of the project to facilitate coal transport.
State-owned coal producer Bukit Asam has a large coal mine in Tanjung Enim, but transport problem has been a big hurdle in its plan to increase production.
Prasetyo said there have been a number of investors interested in carrying out the project but agreement have yet to be reached.
He said investors are required to cooperate with the provincial administration or a state company.
He said there is no regulatory restriction , adding the government is ready to help remove any hurdles.