Time to End the Rail Monopoly

The railway industry in Indonesia remains problematic. The government must be consistent: the seeds of competition need to be sown.

October 10, 2006

THE state railroad company PT Kereta Api (KAI), which marked its 60th anniversary last week, looks increasingly decrepit. Railroad cars full of holes with stinking and poorly maintained restrooms hauled by ancient locomotives, jam-packed passengers and trains that arrive and depart later and later give a picture of the chaotic state of the ailing state-owned railroad company.

Even worse, facts point to a dramatic decline. The total length of railr

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