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s part of its Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) and to facilitate the flow of people and goods, the government says it will open bidding to finish the remaining sections of the Trans-Java Railway next month.

Tundjung Inderawan, the Transportation Ministry’s railway chief, told The Jakarta Post that Rp 9.5 trillion (US$ 1.045 billion) in investment was needed to finish the railway’s remaining sections between Cirebon and Brebes, Brebes and Semarang, Semarang and Bojonegoro, and Bojonegoro and Pasar Turi in Surabaya.

“The sections are expected to complete by 2013,” Tundjung said.

When complete, the two tracks of the Trans–Java Railway will span 727 kilometers between Jakarta and Surabaya, East Java. Two sections comprising about 300 kilometers of track between Jakarta and Cirebon and Brebes and Pekalongan have been completed.

The railway is intended to support ground transportation along Java’s Pantura northern coast highway.

Tundjung said another major transportation major supporting the MP3EI was a proposed 33-kilometer Manggarai–Soekarno Hatta International Airport railway currently under evaluation by state infrastructure financing firm PT Sarana Multi Infrastruktur (SMI).

He said that the review was expected to be complete by mid-2012 and would be continued by the tender process.

According to the National Development Planning Board and the Committee for Infrastructure Development Policy (KKPPI), the project might cost Rp 10.2 trillion ($1.13 billion), far higher than the Rp 4.6 trillion estimated in 2007.

A third infrastructure project is the Puruk Cahu–Bangkuang coal railway in Central Kalimantan, which will require an estimated investment of $3 billion. The project has recently entered the tender
process.

Separately, Deputy Transportation Minister Bambang Susantono the told the Post through a text message that the total investment needed for MP3EI transportation projects was Rp 814 trillion ($89.5 billion), comprising Rp 339 trillion for land transportation, Rp 117 trillion for port development, Rp 32 trillion for airport development, and Rp 326 trillion for railways.

Tulus Hutagalung, a special assistant to the coordinating economic minister for transportation infrastructure, said Indonesia’s infrastructure lagging in comparison to neighboring countries such as Malaysia and Thailand.

According to the World Economic Forum Global Competitiveness Report 2010-2011, Indonesia was ranked 90th of 145 countries surveyed, while Malaysia was ranked 27th and Thailand 46th, he said.

Tulus added that the 2010 World Bank’s Logistics Performance Index (LPI) ranked Indonesia 75th of 155 countries surveyed, far behind Malaysia (29th), Thailand (35th) and the Philippines (44th).

If people continued to rely on private vehicles, Jakarta and its neighboring cities of Bogor, Depok, Tangerang, and Bekasi would suffer financial losses as much as Rp 65 trillion ($7.15 billion) by 2020, he said. (nfo)