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Erick Thohir Asks for Rp3tn Capital Injection for Train Maker INKA

5 June 2023 22:01 WIB

TEMPO.CO, JakartaState-Owned Enterprises or SOE Minister Erick Thohir asked for a capital injection (PMN) totaling Rp3 trillion for state-owned train manufacturer PT Industri Kereta Api (INKA) in order to produce new rail carriages.

"Because of that, when we had a meeting with the Transportation Minister, the Coordinating Minister for Maritime Affairs and Fisheries, and the Industrial Minister, we mapped out that there has to be additional capital for INKA to anticipate the growth of the railroad, the addition of new carriages,” Erick said at a joint working meeting with Commission XI in Senayan, Jakarta on Monday, June 5, 2023.

On that occasion, he also mentioned the growing number of train passengers which is higher than expected. Therefore, he believed that infrastructure development will become a new problem when the global economy is recovering after COVID-19 in addition to geopolitics and supply chain issues.

“To keep up with the supply of rail needs, one of them is by importing [the train] but it must be accompanied by production [in the country]. That is the reason why INKA's Ebitda (Earning Before Interest, Taxes, Depreciation, and Amortization) is still negative,” Erick explained.

According to Erick, INKA already has a quality factory. One of them is located in Banyuwangi, which is operated together with the Swiss Stadler company to supply the needs of railroad cars in Southeast Asia.

“This is what we certainly have to push for. INKA needs an additional Rp3 trillion so there will be an equilibrium between the production of carriages and the increases in the train's number. Even if we import [the train], we will conduct it at the minimum because it will only fill the gap for the next 6 to 7 months,” he elaborated.

The plan to import used trains has not yet been decided. SOE Minister Erick Thohir on Thursday, May 25, claimed he was still waiting for final data from INKA and state-owned train operator KCI regarding its ability to produce rail carriages and the increase in the passengers' number to synchronize and make decisions.

AMELIA RAHIMA SARI | RIRI RAHAYU

Editor's Choice: SOE Minister Erick Thohir on Used Train Import Plan: Waiting for Final Data

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