Ministry Asks to Add Local Contents in National Railway Projects
21 July 2018 16:08 WIB
TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi asked to increase local contents in multiple projects of national railway. Budi expected the railway projects did not use only foreign products.
“[For example] providing little components in the train infrastructure,” said Budi when met at the Indonesia railway event in Grandhika Iskandarsyah Hotel, South Jakarta, Saturday, July 21.
Transportation Ministry recently started multiple railway projects in several regions, such as light rail transit (LRT) in Medan, Bandung, and Surabaya. The International Monetary Fund and World Bank reportedly would fund the project.
The ministry would seek funding sources for logistics train in Kalimantan and Makassar to Parepare as well as the high-speed rail Jakarta-Bandung and Jakarta-Surabaya.
Budi mentioned the use of local contents in the construction of the train under the management of the state railway manufacturing company Industri Kereta Api (Inka) was dominated by components from abroad. “Inka only uses 35 percent [of local contents],” he said, expecting the figure would reach 40 to 50 percent.
According to Transportation Minister Budi Karya, several local companies including Len, Narata Indonesia, and Pindad started producing local components for railways from which Inka would later meet its needs.
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