Jakarta. The UK is seeking a bigger role as a financing and technology partner in Indonesia's railway expansion, offering up to £4 billion ($5.3 billion) in export financing as Indonesia highlighted the planned Surabaya metropolitan urban railway as one of its priority rail projects at the UK-Indonesia Rail Partnership Forum 2026 on Wednesday.

The financing capacity, offered through UK Export Finance (UKEF), comes as Indonesia accelerates railway development beyond Jakarta and looks to attract new funding for future urban transport projects.

UK Trade Commissioner for Asia Pacific Martin Kent said the financing, provided through UK Export Finance (UKEF), is intended to complement British expertise in supporting Indonesia's long-term infrastructure development.

"UKEF now has up to £4 billion of financing capacity available for Indonesia, and it stands ready to deploy that £4 billion to provide competitive UK financing solutions to support Indonesia's future ambitions alongside British expertise," Kent said at the forum in Jakarta.

Kent said the financing, provided through UK Export Finance (UKEF), is intended to complement British expertise in supporting Indonesia's long-term infrastructure development.

"UKEF now has up to £4 billion of financing capacity available for Indonesia, and it stands ready to deploy that £4 billion to provide competitive UK financing solutions to support Indonesia's future ambitions alongside British expertise," Kent said at the forum in Jakarta.

Kent said the UK's ambition extends beyond participating in individual projects, emphasizing long-term collaboration with the Indonesian government, industry, and development partners.

"The UK ambition here is not simply to participate in individual projects, but it's to build long-term partnerships with Indonesia," he said.

Indonesia, meanwhile, identified the Surabaya metropolitan urban railway as one of its key priorities for future rail development.

Transportation Ministry Director General of Railways Allan Tandiono said the project, which includes a proposed MRT or LRT system, is one of the country's strategic initiatives to improve urban mobility and regional productivity.

"Among these priorities, the development of the Surabaya metropolitan area urban railway system, including the Surabaya Regional Railway Line and the proposed MRT or LRT system, represents one of Indonesia's strategic initiatives to improve urban mobility and regional productivity," Allan said.

Allan said Indonesia has made significant progress in modernizing its railway network over the past decade through the development of MRT, LRT and high-speed rail systems. However, he acknowledged that financing remains one of the government's biggest challenges.

"In the future, we hope that the United Kingdom can come forward, not only doing business with us, but also providing generous financing to us, so that we can expedite the railway development even faster," he said.

Indonesia currently operates nearly 6,927 kilometers of railway lines -- the longest network in Southeast Asia -- with most of the tracks located on Java. The government has also identified more than 2,200 kilometers of inactive railway corridors that could be reactivated and expanded in the future.

Allan said local governments frequently request new railway projects, but securing funding remains a recurring obstacle.

"Our office almost every week receives requests from local governments telling us that they want to build railway lines for their communities. ... The main question that we ask each other is, where can we get the money from?" he said.

While the government remains open to public-private partnerships, Allan said freight rail projects could offer the most realistic entry point for private investment because passenger rail typically requires substantial government support.

Deputy Infrastructure Minister at the National Development Planning Ministry (Bappenas) Abdul Malik Sadat Idris said railway development has become a higher priority under President Prabowo Subianto, with several long-planned projects expected to move forward soon.

"The president himself is a strong supporter of railway development," Abdul Malik said, adding that preparations for new projects are expected to be completed before Aug. 17.

Credit News: www.jakartaglobe.id/business/