KAI-INKA Merger Set for Completion Before Jan 2027

TEMPO.CO, Jakarta - Head of the State-Owned Enterprises Regulatory Agency (BP BUMN) and Chief Operating Officer (COO) of Danantara, Dony Oskaria, stated that the planned merger between state-owned rail operator PT Kereta Api Indonesia (KAI) and state train manufacturer PT Industri Kereta Api (INKA) will be completed before January 2027.

According to Oskaria, the consolidation process is still ongoing and forms part of Danantara’s sector-based restructuring of state-owned enterprises.

“It should be before January, in fact, it should be. But I’m checking, that’s why I’m checking. We’re in the process of consolidating each sector,” Oskaria said in Jakarta on Tuesday.

He expressed hope that the consolidation could be completed before January 2027, though he noted he would reconfirm the implementation timeline based on ongoing progress.

Oskaria also stated that PT INKA will be placed under PT KAI once all stages of the corporate consolidation are completed. “Yes (PT INKA will be under KAI),” Oskaria said.

Previously, KAI President Director Bobby Rasyidin stated that the consolidation and integration of INKA, is targeted to take effect on January 1, 2027, after the company’s due diligence process is complete.

“The consolidation and integration are planned for January 1,” Bobby stated during a hearing with Commission VI of the Indonesian House of Representatives (DPR) in Jakarta on Wednesday, September 23.

Bobby explained that the transaction mechanism (inbreng) process for INKA will be carried out in September 2026 under a conditional scheme, while consolidation and integration will be implemented starting in early 2027.

“So, the inbreng will be this month, but the inbreng will be conditional. So, the plan is to complete the consolidation and integration on January 1,” he said.

According to Bobby, KAI has completed due diligence on all aspects of INKA as part of the integration process. “We have now conducted due diligence on all aspects of INKA,” he said.

Following the integration, INKA will assume a broader role because KAI’s railway rolling stock maintenance operations, including the Balai Yasa train maintenance center, will be integrated into the train manufacturing company.

Under this scheme, INKA’s activities will encompass not only manufacturing, but also the maintenance and engineering of railway rolling stock.

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