INKA to Modernise Madiun and Banyuwangi Factories via 2025 State Capital Injection
PT Industri Kereta Api (Persero), or INKA, is leveraging the 2025 State Capital Injection (PMN) to modernise production facilities at its Madiun and Banyuwangi plants to boost the capacity and capability of the national railway industry.
President Director of PT INKA, Eko Purwanto, stated that the 202 Segment 2025 PMN will focus on developing production facilities, increasing bogie manufacturing capacity, developing propulsion systems, and refining production and testing facilities at the Banyuwangi plant. Speaking during a hearing with Commission XI of the Indonesian House of Representatives (DPR RI) in Jakarta on Monday, Eko noted that the product focus will be divided between the two sites, with Madiun focusing on non-powered carriages.
He explained that the Madiun plant will specialise in producing non-powered vehicles, such as conventional passenger carriages, freight wagons, locomotives, bogies, and the development of propulsion systems. Through the PMN, Eko mentioned that the company will also update and modernise various production facilities in Madiun, including surface treatment, milling machines, press machines, and other manufacturing equipment.
Meanwhile, the Banyuwangi plant, which is currently under construction, is set to become the production hub for powered trains, including Electric Multiple Units (KRL), Light Rail Transit (LRT), Mass Rapid Transit (MRT), high-speed trains, and Diesel Electric Multiple Units (KRDE). Spanning 83.49 hectares, the Banyuwangi plant is currently operating on a limited basis with a single production line.
Through the 2025 PMN, INKA intends to complete the plant’s facilities, including adding a second production line and testing facilities to ensure optimal operation. In addition to capacity expansion, the company will modernise production technology, such as upgrading welding facilities from conventional systems to robotic welding to improve manufacturing quality and productivity.
To support this programme, the 2025 PMN has allocated approximately IDR 440 billion for production facilities and development. This budget will cover the procurement of cutting, milling, and press machines, robotic welding, propulsion testing facilities, warehouses, and necessary buildings. Furthermore, IDR 33 billion has been allocated for supporting facilities, including maintenance buildings, transversers, and operational digitalisation.
As of May 2026, Eko reported that the realisation of PMN usage stands at approximately 13 per cent and is projected to reach 35 per cent by June 2026. INKA aims to complete the procurement process by the third quarter of 2026, with project completion carried out gradually until the third quarter of 2027, as some purchased equipment is customised and requires longer production lead times.
According to Eko, the facility development through the 2025 PMN is intended not only to increase the company’s production capacity but also to strengthen the national railway industry ecosystem and increase local content in various train products manufactured by INKA.