General Electric is considering making Indonesia its assembly hub for locomotives for the Asia market, hoping to capitalize on the rising demand in the country and other countries in the region.<\/p>\n
CEO Jeffrey Immelt said last week that the assembly plant would be developed in cooperation with local partners which already had long experience and a track record in the locomotive business.<\/p>\n
\u201cI think Indonesia could become a centre of excellence for the locomotive business in the [Asian] region. It could be a great location from which to export to other countries in the region,\u201d he said, after addressing a discussion entitled \u201cInnovation as the driving Force for Economic Transformation\u201d.<\/p>\n
He said Indonesia was capable of functioning as a locomotive assembly hub as it already had railway-related industries, with have long experience and good quality human resources, plus the technological capacity to develop the business.<\/p>\n
Recently, GE, which was ranked no. 4 in BusinessWeek\u2019s 2008 among the world\u2019s most innovative companies, has secured an order from the state-owned railway operator PT Kereta Api to make 20 new
\nlocomotives at the total price of US$40 million. The locomotives will be delivered between 2010
\nand 2011.<\/p>\n
Satya Heragandhi, GE Transportation\u2019s Southeast Asia Sales Director, said that for the next five years the state-owned operator would need about 150 locomotives valued at $300 million to improve its railway services in Java and Sumatra, following the government\u2019s decision to liberalize the railway business, which has previously been a PT Kereta Api monopoly.<\/p>\n
In the period 2004 to 2009 PT Kereta Api had ordered 10 locomotives from GE and all had been delivered, he said.<\/p>\n
\u201cAs the railway industry would be liberalized by 2010, and there is a commitment on the part of
\nthe Indonesian government to rejuvenate the railway services in Indonesia, particularly in Sumatra and Kalimantan, so there will be a boom in railway-related businesses,\u201d he said.
\nHe said the locomotives were not completely made in the US at Erie.<\/p>\n
\u201cOnly the engines and some key parts are made there. The other components are made and assembled by PT INKA.<\/p>\n
\u201cI think the local content of locomotives [assembled in Indonesia] has increased from just 15 percent five years ago to more than 21 percent now,\u201d he said.<\/p>\n
Kereta Api\u2019s President Director, Ignasius Jonan said recently that the company was committed to improving its services, including safety, comfort and the punctuality of its train services.<\/p>\n
He said his company\u2019s development would be directed in future more towards freight services rather than towards passenger services as was the present case.<\/p>\n
Satya noted that the growing investments in the locomotive sector were partly the results of a meeting in 2006 between Immelt, his company\u2019s CEO, and President Susilo Bambang Yudhoyono.<\/p>\n
They had discussed the possibilities for GE investing in the country\u2019s infrastructure, particularly in the railway sector.<\/p>\n
GE Transportation is a subsidiary of the widely diversified business group GE, which is a leading global player in railroads, marine and shipping, mining and drilling and in turbines and wind generation.<\/p>\n
- JP\/Benget Besalicto Tnb.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ge-sees-indonesia-as-regional-locomotive-assembly-hub-1254732590", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }