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Jakarta Post

Railway operator KAI to raise Rp 2t bonds for new trains, facility upgrades

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Sat, November 16 2019   /  01:58 am

State-owned railway operator PT Kereta Api Indonesia (KAI) will issue Rp 2 trillion (US$142.7 million) in bonds to refinance the firm's bank loans, buy new trains and upgrade train facilities.KAI president director Edi Sukmoro said on Monday on the sidelines of a gathering of bond investors that 672 train cars aged more than 30 years old needed to be replaced. The old train cars comprise passenger cars, freight cars, dining cars and locomotives."We will replace those train [cars] gradually with new ones for a better service. In terms of amenities, safety and security, many of our facilities [and] trains need to be restored indeed," he said, adding that, by 2020, all of the old train cars would be scrapped and replaced with new ones. KAI plans to purchase new train cars from state-owned train manufacturer PT Industri Kereta Api Indonesia (Inka), opening possibilities for imported trains a...