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Indonesia to import Chinese trains for aging Commuter Line
Indonesia's Commuter Line has inked a deal worth almost $50 billion to purchase three trains from China's CRRC, the latest transportation deal amid the government's continuing efforts to deepen its ties with Beijing in the industry.
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Asdo Artriviyanto (left), president director of PT Kereta Commuter Indonesia (KCI), signs a contract on Jan. 31, 2024 in Beijing with his unidentified counterpart from China’s CRRC Sifang Co. Ltd. to procure three trains from the Chinese state-owned rolling stock manufacturer, as seen in this handout photo provided by KCI. (KCI/-)
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T Kereta Commuter Indonesia (KCI), a subsidiary of state-owned railway company PT Kereta Api Indonesia (KAI) that operates the Commuter Line brand, has inked an agreement with CRRC Sifang Co. Ltd. to purchase three complete trains for Rp 783 billion (US$49.69 billion) from the Chinese state-owned rolling stock manufacturer.
KCI said the trains would replace the aging fleet of the Greater Jakarta Commuter Line and help boost the capacity of the electric rail service (KRL).
“The procurement of the new KRL facilities is to accommodate the needs of Greater Jakarta Commuter Line users in 2024-2025, which has reached [to date] almost 1 million commuters per day,” KCI president director Asdo Artriviyanto said in a statement on Wednesday.
In addition to state capital injection (PMN) from the government, KCI and parent company KAI plan to take out loans to pay for the new trains, which are intended to replace those that cannot be upgraded.
Read also: KCI considers importing three trains to meet surging passenger demand
KCI had initially signed a memorandum of understanding (MoU) on Nov. 9 with CRRC Sifang Co. Ltd. to develop Indonesia’ railway facilities, which included an agreement to procure electric multiple unit (EMU) and diesel multiple unit (DMU) trains.
The MoU also marked a starting point for the two companies’ cooperation in technology transfer, facility maintenance and improvement, spare parts procurement and human resource capacity building.
