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Germany backs $250m Surabaya rail project set for construction next year

  • iipclondon
  • August 6, 2026
  • 4:47 pm
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Deadly shortcut: People cross railway tracks on May 3 in the Tanah Kusir area of Kebayoran Lama, South Jakarta. State-owned railway company Kereta Api Indonesia (KAI) said 130 of the 423 railway crossings in its Daop 1 Jakarta operational area remain unguarded, prompting plans for joint enforcement with local authorities to improve transportation and public safety. (Antara/Sulthony Hasanuddin)

Germany is backing the first phase of Indonesia’s Surabaya Regional Railway Line (SRRL) project with 236 million euros (US$256 million) in financing, as the country prepares to begin construction of the commuter rail line next year. The initiative, part of the European Union’s broader Global Gateway strategy, aims to develop the Greater Surabaya commuter corridor into the region’s first electrified rail line. “We are proud to contribute to Indonesia’s sustainable mobility ambitions through initiatives such as the Surabaya Regional Railway Line,” designated Deputy Head of Mission at the German Embassy in Jakarta Oliver Sperling said in a statement on Wednesday. Sperling said Germany and Indonesia had built a long-standing partnership in transport infrastructure and that German and European companies stood ready to support Indonesia’s transition toward climate-resilient transport systems by bringing engineering expertise, innovative technologies and long-lasting infrastructure solutions. 

The financing package comprises a concessional loan of approximately 230 million euros and a 6-million-euro technical assistance grant from KfW, alongside counterpart funding from the Indonesian government. It is currently undergoing detailed engineering design and procurement, with construction expected to begin between 2027 and 2028. The SRRL is among the country’s priority infrastructure projects under the 2025-2029 national development plan for the Greater Surabaya metropolitan area. Its first phase will cover a roughly 37-kilometer section connecting Surabaya Gubeng Station with Sidoarjo Station. Once operational, the upgraded railway is expected to serve more than 200,000 passengers daily and benefit over 1.3 million residents within its first two years. 

“Sustainable transport is fundamental to Indonesia’s economic growth, connectivity and green transition,” said Denis Chaibi, ambassador of the EU to Indonesia and Brunei Darussalam.  Chaibi said the railway project reflects the EU’s Global Gateway strategy, under which the bloc seeks to mobilize high-quality investment, share European expertise and build long-term partnerships for resilient, low-carbon infrastructure in partner countries. Read also: Whoosh structural overhaul to satisfy China, Purbaya says The SRRL has entered the detailed engineering design (DED) stage and is expected to move into procurement in early 2027, East Java Vice Governor Emil Elestianto Dardak said in his Instagram post on Wednesday. 

The DED, being prepared by Japanese engineering consultant Chodai, involves producing detailed technical plans for the project, including station designs, the double-track railway alignment, electrification systems and supporting infrastructure. Emil said the Surabaya-Sidoarjo section is the only corridor in northern and southern East Java that has yet to be double-tracked, despite serving the Greater Surabaya metropolitan area, home to around 10 million people. “President Prabowo Subianto has given the clearance for it to proceed. The double track is needed because it will allow multiple rail services to operate simultaneously,” Emil said. He also said construction would prioritize land that has already been cleared for development, while local governments are preparing supporting spatial planning as part of the project’s implementation. Related Article Trump’s new tariffs are an opportunity to fight back France records around 1,000 excess deaths in heatwave Germany, Poland poised for soaring temperatures as heatwave moves east Ministry pushes mass transit to curb fuel subsidy costs Bekasi deadly train crash renews railway safety concerns

Written by: Ruth Dea Juwita (The Jakarta Post)

This article was published in thejakartapost.com with the title “Germany backs $250m Surabaya rail project set for construction next year”. Click to read: https://www.thejakartapost.com/business/2026/07/30/germany-backs-250m-surabaya-rail-project-set-for-construction-next-year

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