Indonesian Political, Business & Finance News

INKA to Utilise 2025 State Capital Injection to Develop Local Propulsion and Bogie Production

| Source: ANTARA_ID Translated from Indonesian | Business
INKA to Utilise 2025 State Capital Injection to Develop Local Propulsion and Bogie Production
Image: ANTARA_ID

Jakarta (ANTARA) - PT Industri Kereta Api (Persero), known as INKA, is utilising the 2025 State Capital Injection (PMN) to develop domestic train propulsion systems and increase bogie production capacity.

President Director of PT INKA, Eko Purwanto, stated that the development of propulsion systems is a primary focus of the Rp473 billion PMN allocation for 2025. This initiative aims to strengthen the independence of the national railway industry, as these components have historically been dependent on imports.

“Regarding propulsion, this refers to the drive system; we want to produce propulsion ourselves at INKA, which we have previously imported,” Eko said during a hearing with Commission XI of the Indonesian House of Representatives (DPR RI) in Jakarta on Monday.

He added that propulsion development will be supported through enhanced design and engineering, as well as research and development (R&D) activities, to increase the local content of national railway products.

In addition to propulsion development, Eko noted that the 2025 PMN is also directed towards increasing the production capacity of bogies, which are essential railway components. Currently, INKA’s bogie production capacity reaches 300 carsets per year. Once new facilities are operational, this capacity is targeted to increase to 586 carsets per year. To support this expansion, INKA will add bogie production facilities, including bogie frame facilities and specialised robotic welding lines for bogies.

Eko stated that the 2025 PMN will also be used to modernise production facilities at the Madiun and Banyuwangi plants. In Madiun, the company will update various production machines, such as surface treatment, milling machines, press machines, and other manufacturing equipment. He noted that the Madiun plant currently has a production capacity of approximately 800 freight wagons, 336 passenger carriages, and 15 locomotives per year.

Meanwhile, the Banyuwangi plant will focus on producing powered trains, such as Electric Multiple Units (KRL), Light Rail Transit (LRT), Mass Rapid Transit (MRT), and Diesel Electric Multiple Units (KRDE). The 83.49-hectare Banyuwangi plant currently operates one production line with a capacity of approximately 125 KRL units per year.

INKA has allocated the 2025 PMN as follows: Rp440 billion for production facilities and development, and Rp33 billion for supporting facilities, including maintenance buildings, transversers, and operational digitalisation.

As of May 2026, INKA recorded a PMN 2025 realisation of approximately 13 per cent, or Rp62.5 billion, 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.

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