Danantara prepares additional capital to strengthen INKA's performance

The Chief Operating Officer (COO) of Danantara and Head of the State-Owned Enterprise (SOE) Regulatory Agency, Dony Oskaria, stated that his agency is preparing additional capital to strengthen the performance of PT Industri Kereta Api (INKA).

According to Dony, the capital injection is part of a broader transformation of SOEs within the industrial sector to support the development of rail-based public transport in Indonesia. “Because our public transport transformation will focus more on railways, we are pushing for INKA’s transformation to proceed effectively,” Dony said in Jakarta on Tuesday.

He explained that various improvement measures are being prepared to increase INKA’s production capacity, which is currently deemed insufficient to meet national railway rolling stock procurement needs. Dony noted that these improvements are necessary as rail-based public transport is projected to continue growing, requiring the national industry to possess greater and more competitive production capabilities.

He further noted that INKA’s financial condition remains a challenge, as the company faces negative equity and unsustainable loans amounting to approximately Rp4.7 trillion that require urgent rectification. “Currently, their capacity is not yet sufficient for that. Therefore, we are planning improvements there, including capital increases, because they are actually facing financial problems. Their equity is negative, and there are unsustainable loans of Rp4.7 trillion,” he said.

He assessed that financial restructuring is a vital prerequisite for INKA to increase its production capacity and strengthen the competitiveness of the national railway industry in meeting domestic market demands. However, Dony did not specify the amount of additional capital to be provided to INKA or the schedule for its disbursement.

Dony expressed hope that the capital injection and comprehensive transformation would enable INKA to become a strong and sustainable backbone of the national public transport industry in the future. “Everything must be tidied up. INKA also has financial issues. Therefore, we must fix them so that in the future, INKA can serve as our public transport industry,” Dony concluded.