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Economy in brief: GE to supply locomotives to Sumatra, Sulawesi
JAKARTA: US-based General Electric (GE) aims to supply locomotives for railway services on Sumatra and Sulawesi islands
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AKARTA: US-based General Electric (GE) aims to supply locomotives for railway services on Sumatra and Sulawesi islands.
The routes are still under development and are targeted to be finished by 2019 for Sulawesi and 2021 for Sumatra. The government says the projects will not be affected by recent budget cuts.
“We are still waiting for the tender; we will submit it immediately,” GE Indonesia operations president director David Hutagalung told The Jakarta Post during the signing of a memorandum of understanding (MoU) between state-owned railway operator KAI and the US Trade and Development Agency (USTDA) in Jakarta on Friday.
Between 2014 and 2016, GE supplied 150 new locomotives to KAI. In June, GE received a maintenance order for 50 KAI locomotives made by GE with a contract value of US$60 million.
“Our locomotives’ local content reached 24 percent; the bogie is made by state owned PT Barata Indonesia and assembled by PT Industri Kereta Api [Inka],” David said.
Other than GE, KAI also has options to source locomotives from Inka. The state-owned company has produced CC300 locomotives since 2013. — JP
