The government has postponed several rail projects in the center of the country due to a state budget cut. The ministry will see a cut of Rp 3.7 trillion (USD 277.2 million) of its original Rp 48.4 trillion (USD 3.6 billion) budget allocated from the 2016 state budget on account of an expected tax income shortfall.
“Based on the President’s principal, the Java railway projects should be sacrificed for the ones outside of Java right now,” said Prasetyo Boeditjahjono, the ministry’s director general for railways.
Double-track railway construction projects in southern Java will be postponed, such as the Madiun-Kedungbanteng and the 76-km Kroya-Kutoarjo section. All Java railway projects, except for the 95-km Solo-Madiun section, were initially slated to start this year and be completed by at least 2019.
Instead, President Joko Widodo has told the Transportation Ministry to prioritize railway projects outside Java, such as the ongoing trans-Sumatra and trans-Sulawesi projects.
Share on:
