Recurring level-crossing accidents expose an imbalance between railway risks and legal protection for third parties. This study examines PT Kereta Api Indonesia’s civil liability after the 2025 State-Owned Enterprise reform and develops a model based on Systemic Outcome Accountability Theory. Using normative legal research with statutory, conceptual, case-illustrative, and limited functional-comparative approaches, the study finds that Article 159(1) of Law Number 23 of 2007 retains a fault-based standard that disadvantages victims because crucial operational and technical evidence remains controlled by operators and public authorities. Regulatory fragmentation also distributes safety duties without an integrated compensation and recourse mechanism. The 2025 reform reinforces PT KAI’s separate corporate responsibility while preserving its public-service obligations. This study proposes a three-layer framework consisting of limited strict liability toward victims, proportional recourse among contributing actors, and corporate risk governance supported by evidence disclosure, mandatory third-party insurance, and a dedicated railway accident compensation fund for third parties.
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