KAI Chief Confirms Merger with INKA to be Completed This Year; DPR Issues Warning
Jakarta, CNBC Indonesia - PT Kereta Api Indonesia (Persero) has confirmed that the planned business merger with PT Industri Kereta Api (Persero), also known as INKA, is proceeding as planned. The President Director of KAI, Bobby Rasyidin, emphasised that the process follows direct instructions from the Daya Anagata Nusantara Investment Management Agency (Danantara) and is targeted for completion within this year.
According to Bobby, this integration step is part of the State-Owned Enterprise (BUMN) consolidation agenda being driven by the government to enhance efficiency and effectiveness in managing state-owned companies.
“Yes, that is a directive from Danantara. It is targeted to be completed this year,” Bobby stated when met at the Parliament Complex, Jakarta, on Wednesday (3/6/2026).
He explained that in the new structure currently being prepared, KAI will serve as the holding company, while INKA will operate beneath it as a sub-holding company.
“We will be the holding company. INKA will become the sub-holding,” he said.
This scheme is expected to strengthen the synergy between KAI, as a railway transport operator, and INKA, as the national manufacturer of railway rolling stock. Through this integration, coordination between operational requirements and manufacturing development is expected to become more streamlined.
Meanwhile, Member of Commission VI of the Indonesian House of Representatives (DPR RI), Rizal Bawazier, stated that the DPR has received the Corporate Work Plan and Budget (RKAP) documents from the State-Owned Enterprise Agency (BP BUMN) containing the KAI and INKA integration agenda.
According to Rizal, the document highlights an emphasis on an acquisition process targeted for November 202<0xA0>26.
“There is a letter from the BUMN Agency here, detailing the plan to integrate KAI and INKA. This is very positive, and the RKAP indicates an emphasis on the KAI-INKA acquisition starting in November 2026,” Rizal noted during a Hearing (RDP) with KAI and INKA.
He assessed that merging these two SOEs has the potential to strengthen the national railway industry by integrating the operator and manufacturing sectors into a single, mutually supportive business ecosystem.
Nevertheless, the DPR warned that the integration process must be conducted with caution.
Nashim Khan, also a member of Commission VI, emphasised that the synergy between the operator and the manufacturer must not sacrifice the business development of either party, particularly the national manufacturing capabilities held by INKA.
“Since there is an operator and a manufacturer, this must be a synergy where integration works; it does not mean we should stifle our own manufacturing,” said Nashim.
Nashim also requested that the holding model and the division of business roles be thoroughly discussed before the merger is realised.
“If a holding structure is to be implemented, each sector must be discussed. We must ensure that KAI and INKA can both thrive, and that INKA can develop what KAI requires in the future. This integration needs careful thought so that it does not disadvantage either party. That is the kind of cooperation we expect moving forward,” he concluded.