Minister Urges Railway Industry to Use 50 Percent Local content
August 23, 2018 | 06:20 pm
TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi demanded the railway industry to increase the use of local content. "In the near future, together with several State-Owned Enterprises, we will increase [the number of local contents] to more than 50 percent," said Budi at BPPT office on Thursday, August 23, 2018.
Budi said that for the initial construction, the local content used in train construction is 30 percent. Currently, the level increased to 40 percent. Meanwhile, sensitive and main components for the trains still needs to be imported.
"The trains in Palembang are still using 40 percent [local content], but later in Greater Jakarta, [the local content] must be 50 percent," Budi said.
Budi said President Joko "Jokowi" Widodo reminded that with the increasingly expensive US Dollars, the government needs to increase the use of local content. As a result, the Transportation Ministry urged the Assessment and Application of Technology Agency or BPPT to provide assistance.
MUHAMMAD HENDARTYO
