4 SOEs Collaborate to Reoperate the Sawahlunto – Muaro Kalaban Railway

PT Kereta Api Indonesia (Persero) is collaborating with PT Bio Farma (Persero), PT Pupuk Indonesia (Persero), and PT Semen Indonesia (Persero) Tbk (SIG) to reoperate the Sawahlunto-Muaro Kalaban railway line in West Sumatra. This collaboration was marked by the signing of the Sponsorship Cooperation Agreement at the Borobudur Hotel, Central Jakarta, Thursday (23/6).

Signing of the Cooperation Agreement (PKS) at the Borobudur Hotel, Central Jakarta, Thursday (23/6).

Through this cooperation agreement, the four SOEs will realize the reoperation of the defunct Sawahlunto-Muaro Kalaban railway line in West Sumatra. The 4 km line will eventually serve a tourist train pulled by the E1060 Steam Locomotive, better known as Mak Itam.

This project is driven by the Ministry of SOEs as part of the state-owned companies' efforts to support West Sumatra's economic recovery in the tourism sector. The reactivation of this line is a program by the Sawahlunto City Government to support the Ombilin Coal Mining Heritage of Sawahlunto site, which was designated as a UNESCO World Heritage Site on July 6, 2019.

Secretary of the Ministry of SOEs, Susyanto, stated that SOEs have two roles: Creating Value and being an Agent of Development. The collaboration of these four SOEs is an embodiment of the Agent of Development role.

“We from the Ministry of SOEs express our gratitude. This collaboration represents one of the SOE core values, which is Collaborative—an embodiment of what the Minister keeps echoing. And of course, as I said earlier, it is because we do not only seek profit but also assist regions, particularly West Sumatra, in restoring train operations,” said Susyanto.

With support from Bio Farma, Pupuk Indonesia, and SIG, KAI will repair infrastructure including tracks, bridges, tunnels, and other supporting facilities. Currently, KAI is repairing the German-made 1965 E1060 series cog steam locomotive. The Sawahlunto-Muaro Kalaban line is targeted to be operational again by January 2023.

Through this partnership, each SOE will receive naming rights and various other commercial benefits at the stations and on the train that will be operated. This represents one of KAI's new business schemes through the Asset Non-Commercialization line.

“I express my deepest gratitude to the Ministry Secretary and the ranks of the Ministry of SOEs, SIG, Pupuk Indonesia, and Biofarma who have fully supported the execution of this agreement signing. Hopefully, what we carry out today receives the guidance and blessings of Allah SWT, so that economic recovery during the Covid-19 pandemic transition period, especially in the West Sumatra region, can be implemented as well as possible,” concluded Didiek.

Bio Farma, Pupuk Indonesia, and SIG also stated their full support for the efforts to reoperate the Sawahlunto-Muaro Kalaban railway line.