INKA Expands Export Market

JAKARTA The development of new facilities at PT Kereta Api (INKA) in Banyuwangi, East Java is targeted to be able to boost production to 250-1,000 trains per year. Facilities in the joint venture company INKA and Stadler Rail, a Swiss train manufacturer, are expected to expand the export market for trains made in Indonesia.

Minister of Industry Airlangga Hartarto explained that at the beginning of production, the new 84-hectare INKA facility would produce 250 trains. In its development, INKA will work with Stadler which has a production capacity of 70,000 trains through its factories in 40 countries.

Airlangga explained that the development is important for meeting the needs of domestic trains.

After that, he continued, the development of production would be directed to the export market.

“With this cooperation, access to technology for the development of light rapid transit, Metro, Diesel, electric and high speed trains can be brought to Indonesia,” Airlangga told Bisnis last week.

PT INKA President Director Budi Noviantoro explained that the development of the Banyuwangi plant was indeed export oriented, considering the location of the factory which is close to the Tanjung Wangi goods port. Meanwhile, the construction of the first stage of the plant is projected to last for one year.

Budi explained, after being fully operational the Banyuwangi plant could produce 4 trains per day. This adds to INKA’s overall production capacity. At present the Madiun plant has a production capacity of 1.5 trains per day which has been increased from the initial 1 train per day.

The operation of the factory in Banyuwangi is expected to be able to absorb the workforce around it, as happened at the Madiun factory. “We encourage local workers, if possible, people there [Banyuwangi],” Budi said.

Banyuwangi Regent Abdullah Azwar Anas, in an official statement, explained that the development of the facility in addition to a positive impact on the local economy, could also improve the quality of the surrounding human resources.

Abdullah assessed that the development of the new INKA plant could absorb workers around the factory in the range of 500-2,000 people. (Wibi P. Pratama)

Source: Ministry of Industry Republic of Indonesia