tate-Owned Enterprises (SOEs) Minister Rini Soemarno has said state-owned train manufacturer PT Industri Kereta Api (Inka) will construct a rolling stock factory in Banyuangi, East Java by the end of this year to complement the existing factory in Madiun, also in the province.
"Inka has received a growing number of orders both for domestic use and for export. Therefore, we are accelerating preparations to construct a new factory in Banyuwangi," Rini said in Banyuwangi over the weekend as reported by Antara.
Inka’s factory in Madiun, East Java, has long produced train cars and freight.
Rini said the factory would be built on the land owned by state-owned plantation company PT Perkebunan Nusantara XII.
She said Banyuwangi was selected as a hub for the train industry because of its strategic location nearby the fast growing coastal districts.
"This place was selected because of the existing railway tracks and seaport. We will also construct a toll road. We will elevate the district with various economic projects," she said.
Meanwhile, Banyuangi Regent Abdullah Azwar Anas thanked the minister, saying that the SOEs ministry would help the district grow faster with its plan to construct the rolling stock factory. (bbn)
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