Germany is providing EUR 236 million in financing for the first phase of the Surabaya Regional Railway Line, as the project advances through detailed engineering design and procurement ahead of construction expected to begin between 2027 and 2028.
The financing package comprises a EUR 230 million concessional loan and a EUR 6 million technical assistance grant from Germany’s state-owned KfW Development Bank, alongside counterpart funding from the Indonesian government.
The project forms part of the European Union’s broader Global Gateway strategy, which supports sustainable infrastructure investment and cooperation with partner countries.
“We are proud to contribute to Indonesia’s sustainable mobility ambitions through initiatives such as the Surabaya Regional Railway Line,” Oliver Sperling, Designated Deputy Head of Mission at the German Embassy in Jakarta, said, as quoted by The Jakarta Post.
The project will modernise, double-track and electrify the commuter railway corridor connecting Surabaya with Sidoarjo. The first phase will cover approximately 37 kilometres between Surabaya Gubeng Station and Sidoarjo Station and is included among Indonesia’s priority infrastructure projects under the 2025–2029 national development plan.
The Surabaya Regional Railway Line is currently in the detailed engineering design stage, with procurement expected to begin in early 2027. The design work includes station plans, railway alignment, electrification systems and supporting infrastructure.
East Java Vice Governor Emil Elestianto Dardak said the Surabaya–Sidoarjo section remained the only major railway corridor in northern and southern East Java that had not been double-tracked, despite serving the Greater Surabaya metropolitan area.
“The double track is needed because it will allow multiple rail services to operate simultaneously,” Mr. Emil said. He added that construction would prioritise land that had already been cleared, while regional governments prepared the required spatial planning.
Once operational, the upgraded railway is expected to serve more than 200,000 passengers per day and benefit more than 1.3 million residents during its first two years of operation.
Mr. Sperling said German and European companies could contribute engineering expertise, technology and infrastructure solutions to Indonesia’s development of climate-resilient transport systems.
EU Ambassador to Indonesia and Brunei Darussalam Denis Chaibi said sustainable transport was central to Indonesia’s economic development, connectivity and green transition.
EKONID Brings German Business Perspective to Indonesia-Europe Cooperation on Sustainable Transport Development
The railway project and wider Indonesia-Europe transport cooperation were also discussed during the Indonesia-Europe Roundtable on Sustainable Transport Development, held as part of RailwayTech Indonesia 2026 at JIExpo Kemayoran, Jakarta, on 29 July.
The roundtable brought together representatives from government institutions, railway operators, European companies, development organisations, financing institutions and chambers of commerce. Discussions covered railway development, multimodal transport integration, transit-oriented development, financing mechanisms and investment opportunities.
EKONID participated in the roundtable through representatives from its Business Development Department, Stephan Blocks and Florian Jändrasch-Eisenschmidt.
During the discussion, Mr. Blocks presented perspectives from the German business community and highlighted potential areas of cooperation between Indonesia and Germany, including railway infrastructure, sustainable mobility, technology transfer and investment.
Indonesia aims to expand its railway network to 10,524 kilometres by 2030. The country currently operates approximately 6,900 kilometres of active railway lines and records around 550 million passenger journeys annually, with most railway infrastructure and passenger traffic concentrated on Java.
