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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Indonesia's KAI and Inka Begin Strategic Integration to Boost Rail Industry

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesian state-owned railway companies KAI and INKA have begun a strategic integration process to strengthen the national rail industry.
  • The integration aims to align KAI's operator needs with INKA's manufacturing capabilities, focusing on customer needs and shared vision.
  • A significant opportunity lies in meeting the projected demand for 156 Electric Railcar (KRL) sets by 2040, with further potential in other railcar types.

PT Kereta Api Indonesia (KAI) and PT Industri Kereta Api ( INKA) have officially launched a strategic integration process, marked by a kick-off event in Jakarta. This move signals a concerted effort to bolster Indonesia's domestic railway manufacturing sector.

Desty Arlaini, Senior Vice President of Business Performance & Asset Optimization at Danantara Asset Management, emphasized the critical need for a unified vision among the leadership and employees of both companies. "All leaders need to have the same vision, build shared value, and place customer needs as the main orientation. KAI and INKA must become one team that respects each other's competencies," Arlaini stated.

KAI President Director Bobby Rasyidin highlighted the integration as a major step toward building a robust national railway industry ecosystem. He pointed out that aligning long-term rolling stock needs between KAI as the operator and INKA as the producer is crucial. "The integration of KAI and INKA is a big step to build a stronger national railway industry ecosystem," Rasyidin said.

Rasyidin specifically identified the demand for Electric Railcar (KRL) sets as a key area of opportunity. Initial projections by KAI estimate a need for approximately 156 KRL sets by 2040. This figure, he noted, does not include demand for Diesel Railcars, long-distance trains, locomotives, or freight services, underscoring the substantial room for growth in national manufacturing capacity, technological advancement, and quality assurance.

DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.