Railway Efficiency Project

closed

With the general objective of improving the economic efficiency and service quality of Indonesia's railway sector, to position it to play its proper role within the transport system, the Railway Efficiency Project aims specifically at: a) railway subsector policy reform by restructuring the railway corporation, reforming its relationship with the government and creating the foundations for expanded private participation; b) rationalizing railway subsector capital investments; c) improving railway subsector management and operations; and d) increasing the physical capacity of an important railway corridor. The project consists of five components: a) policy reform involving restructuring of Perumka into a persero and reform of government corporate interfaces; b) improvements to the railway between Jakarta and Bandung to expand capacity, shorten passenger journey time, and improve safety; c)implementation of a modern track maintenance system on Java; d) implementation of a diesel electric locomotive unit exchange maintenance system on Java; and e) strengthening of Permuka's management.