TEMPO.CO, Jakarta - Indonesia`s railway industry has improved its competitiveness through cooperation with global companies that will allow transfer of technology, and improve its role in the global supply chain, Industry Minister Airlangga Hartarto stated.
Hartarto made the statement after visiting the Stadler Rail Group headquarters in Bussnang, Switzerland, on Friday (Jan 25), as quoted in a statement obtained on Saturday.
State-run train manufacturer PT INKA (Persero) has signed an agreement with the Swiss railway company Stadler Rail Group.
"Stadler is a player in the railway industry in Europe and also the world`s fourth-largest producer. This is a momentum for PT INKA to derive mutual benefit," he stated.
The two companies have agreed to build an integrated train manufacturing firm in Banyuwangi District of East Java, with a total investment of Rp30 trillion. In its first stage, the company will disburse Rp500 billion of investment.
Under the agreement, PT INKA will prepare a 12-hectare plot of land, while Stadler will provide the technology, machinery, and market.
The project is expected to absorb some two thousand workers.
"The cooperation is expected to open wider the export market for both companies, as each of them already has their networks," Hartarto remarked.
PT INKA can focus its market on Bangladesh, India, Sri Lanka, and the Philippines, while Stadler could meet the market demand in Singapore and Australia.
With its advanced technology, the new factory in Banyuwangi can produce various types of trains, such as light rail transit, metro, and high-speed train.
The factory can produce four coaches a day or more than one thousand coaches a year.
"We are encouraging the national railway industry to dominate the domestic market and improve its role in the global supply chain," he noted.