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KAI signs MoU with INKA on stock, services
KAI has inked a deal with local train manufacturer INKA to buy 16 commuter line trains holding 12 cars each, with the first delivery expected in 2024.
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tate-owned commuter railway operator PT Kereta Api Indonesia Commuter (KCI), a subsidiary of PT Kereta Api Indonesia (KAI), has signed a memorandum of understanding (MoU) with state-owned train manufacturer PT Industri Kereta Api (INKA) to procure new rolling stock as it anticipates growing demand.
As explained during the signing ceremony on Monday, KCI plans to procure 16 commuter line trains holding 12 cars each, with the first batch expected to be delivered in 2024.
KCI operates the commuter lines in Greater Jakarta, as well as the Yogyakarta-Surakarta route.
"We hope that with INKA entering this business cluster, the supply chain for train production and maintenance will be fully developed so that we can make technological leaps for technology transfer, such as fast trains and integration with the LRT," Deputy State-Owned Enterprises (SOE) Minister Kartika "Tiko" Wirjoatmodjo said during the ceremony.
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The MoU between INKA and KCI also covers after-sales services, including the provision of spare parts. The value of the prospective procurement deal has not been disclosed, with KAI president director Didiek Hartantyo saying at the same event that the talks were still at an early stage.
KAI said the MoU served as guidance for the two parties in preparing the procurement of the 16 trains while occupancy rates of up to 100 percent showed that demand for commuter rail services was increasing.
"This agreement is in line with the President's message to build transportation that is efficient, environmentally friendly, affordable for the community and takes into account environmental, social and governance (ESG) principles, which will be our standard going forward," Didiek said.
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The SOE Ministry expressed hope that the MOU would accelerate cooperation between INKA and Swiss train manufacturer Stadler Rail to start production at the Banyuwangi factory.
"Before this agreement, we imported [many] second-hand trains; now, we have started to [procure] new trains as an example of synergy between SOEs," Didiek continued.
The cooperation between KCI and INKA comes at a time when the economic recovery puts estimates of rail demand growth on a more dependable foundation.
KCI predicts that the years 2024 and 2025 would see a massive increase in passenger figures as commuter infrastructure is upgraded by the Ministry of Transportation.
"Currently, work on the double-track Bekasi-Manggarai railway connection is progressing, as well as the upgrading of signals in the direction of Bogor, so that headway becomes three instead of five minutes […]. Therefore, in our calculation, we need 16 new trains in the period of 2024 to 2025," Didiek added.
