tate-owned train manufacturer PT Industri Kereta Api (INKA) has secured an Rp 1.69 trillion (US$127.1 million) syndicated loan to build 438 train units ordered by state-owned train operator PT Kereta Api Indonesia (KAI).
The units are the first phase of 1,000 train units ordered to replace old train cars owned by KAI, expected to be completed by 2019. INKA expects to deliver the first train units in October.
"We aim to deliver around 30 units monthly to replace the old trains so that [the first phase] will completed by the end of 2018," INKA president director R Agus H Purnomo said during the signing ceremony in Jakarta.
(Read also: INKA to open new factory amid mounting orders)
The loan provided by state lender Bank Mandiri and state infrastructure financing company PT Sarana Multi Infrastruktur (SMI) helps ensure a smooth process of train car replacement, he continued.
The publicly listed lender contributed Rp 1.19 trillion in loans into the syndication while SMI chipped in Rp 500 billion.
"We hope this partnership can support INKA's performance, especially for producing the 438 train units," Bank Mandiri corporate banking senior executive vice president Alexandra Askandar said.
As of March, the lender has channelled Rp 118.7 trillion in finance to the infrastructure sector, up 26.6 percent compared to the corresponding period last year. Train subsector loans, meanwhile, amounted to Rp 4.71 trillion as of March. (bbn)
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