The museum was established in the 1970s primarily to preserve a wide selection of the steam locomotives which were then coming to the end of their useful lives on the 3ft 6in (1067mm) gauge railways of the Indonesian State Railway (the then Perusahaan Negara Kereta-Api, PNKA). These are parked in the open air next to the original station, originally a transhipment point between the 4ft 8½in gauge branch from Kedungjati to the north-east and the 3ft 6in gauge line onward towards Yogyakarta via Magelang to the south. It is still possible to see that the two sides of the station were built to accommodate different size trains.
Ambarawa lies some way above sea level and was an administrative centre for the Dutch colonialists. It is now a popular area for local tourists, particularly with the nearby hill station of Bandungan and the Hindu-Buddhist temples at Gedong Songo. Foreign tourists pass through the area particularly in conjunction with visiting the Buddhist temple at Borobudur. Hence the museum is well situated and its development into a world class site is not only desirable but feasible with the right kind of backing. Currently it is still part of the State Railway who have supported it to the best of its ability since formation although funding has never been generous.
