State-owned PT Kereta Api Indonesia (KAI) is preparing a Rp 350-trillion ($19.39 billion) project to build an integrated railway network across Sumatra, aiming to connect Banda Aceh in the north to Bandar Lampung at the southern tip of the island, Kontan reported.

The project comes as rail freight demand on Sumatra continues to grow, particularly for coal transportation, although KAI has primarily framed the initiative as a regional connectivity project. KAI's logistics subsidiary handled 936,244 tonnes of coal in April 2026, up more than 11% from March and 21% above its own target for the month, underscoring rising demand for rail freight on the island.

President Director Bobby Rasyidin told a parliamentary hearing on June 3 that the Trans-Sumatra railway is a priority for the company under government directives, with the goal of linking currently fragmented corridors into a single continuous line.

Several operational lines on Sumatra currently run in isolation, including the Bandar Lampung–Palembang and Bandar Lampung–Lubuklinggau corridors, as well as networks in North Sumatra and Aceh. The Trans-Sumatra project seeks to create connectivity between these corridors.

As an initial step, KAI is prioritizing the reactivation and reconnection of approximately 478 km of dormant railway corridors between Banda Aceh and Besitang, with basic design work now underway. The overall investment for the end-to-end railway is estimated at $20 billion to $25 billion, or roughly Rp 350 trillion.

The scheme forms part of KAI'S 2026-2030 transformation roadmap, which targets the reactivation of around 726 kilometers of long-defunct lines in West Sumatra, North Sumatra and Aceh, including the Padang Panjang–Bukittinggi, Sawahlunto–Sungai Limau, Sigli–Lhokseumawe and Langsa–Besitang routes. This reactivation program aims to revive strategic routes that can improve regional connectivity and support community economic activities.

In addition, KAI plans to build about 1,110 kilometers of new track already listed in the National Railway Master Plan, covering corridors such as Prapat–Dumai, Duri–Pekanbaru, Pekanbaru–Rengat, Rengat–Jambi, Kertapati–Tarahan–Bakauheni and Lubuklinggau–Bengkulu.

Separately, KAI's investment roadmap also includes the Tanjung Enim Baru-Tarahan II coal corridor, covering around 313 kilometers through a mix of new lines, shortcuts and capacity upgrades. The route is designed to increase coal shipments from mining areas to ports.

Sumatra's railway system was originally developed during the Dutch colonial era as several isolated networks serving different regions and commodities. Most corridors remain disconnected today, limiting the movement of passengers and freight across the island.

The Trans-Sumatra railway is one of the largest transport infrastructure initiatives being prepared by KAI to boost connectivity and long-term economic growth on the island.