Erick: SOE ready to inject funds to Inka for commuter line train
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Erick: BUMN siap suntik dana ke Inka untuk KRL
26 May 2023
By: Amrozi Amenan
Jakarta - State-Owned Enterprises (SOE) Minister Erick Thohir said that the SOE Ministry was ready to inject funds to PT Industri Kereta Api or Inka to speed up the procurement of commuter line (KRL) carriages.
“If we want to speed up the procurement of the carriages produced by Inka, we will propose an additional capital injection in 2024. After all, SOEs have distributed Rp80 trillion dividends, so there is nothing wrong with taking some of it back as the target was only 40 trillion,” said Erick after attending Indonesia-China Smart City Technology & Investment Expo 2023 in Jakarta on Thursday (26/05/2023).
Erick said the plan to procure KRL trains by bringing them in from Japan must be considered from two perspectives. First, Inka’s production capacity that is adjusted to the increase in train usage in Indonesia. Second, the data on the number of train users, especially KRL users. He has even asked PT KAI to provide the latest data on the number of passengers after the easing of Covid-19.
“When we talk about the Covid-19 data, KAI is still using the conservative data as KAI did not stop operating during Covid. Imagine if it was a purely private sector, would the trains stop? Of course. But SOEs must not stop, they are obliged to serve. So, certainly these 2 data are what I am expecting,” he said.
Regarding Inka’s production capacity and the synchronisation of the train passenger data, Erick admitted that he has coordinated with the Coordinating Ministry for Maritime Affairs, the Industry Ministry, and the Transportation Ministry.
“For data synchronisation, how many can Inka produce and how many is predicted to be required? There must be a meeting point there. Do not look at all the solutions from one perspective only,” he said.
Furthermore, Erick said that his agency was still waiting for the study results from PT Kereta Commuter Indonesia (KCI) and Inka that would later determine the policy on importing used commuter line trains from Japan.
“When I was invited to a meeting with the Coordinating Minister for Maritime Affairs and Investment and the Industry Minister, I said that I was waiting for the two final data. One from Inka, and another from KCI,” said Erick.
Erick said he has asked KCI to review and reprocess the data on the number of commuter line passengers after the Covid-19 pandemic. In addition, he requested the data on the passenger growth forecast for the next few years.
Results from these data will show the number of train carriages that are needed in the future.
Erick also mentioned that the import of commuter line trains aimed to provide convenience for train users.
From Inka, Erick asked for the study results and the data regarding the production capacity of the new trains. The production of the new trains is intended to serve train users in Greater Jakarta. Once the data is released, he said, the decision on adding more carriages could be made.
“When the data from KCI and Inka are available, then we can synchronise them. As a result, a decision will be made on how many carriages can be produced domestically, and how many can be imported,” he said.
Previously, SOE Deputy Minister II Kartika Wirjoatmodjo said that the certainty of importing used commuter line trains from Japan was only waiting for the decision from the Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan, which is expected to be made this year.
“I need one more meeting with the Coordinating Minister for Maritime Affairs and Investment,” he said.
Meanwhile, Transportation Ministry Spokesperson Adita Irawati said that her agency agreed to the emergency import of commuter line trains because there was an element of urgency, and it prioritised the safety of commuter line users.
“In principle, as long as the safety aspect is maintained, the service will continue. We can still accommodate the import as a temporary solution before Inka’s production is complete,” Adita said on Wednesday (24/05/2023).
Adita stated that the Transportation Ministry’s stance on the commuter line train import has been submitted to the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan and PT KAI.
However, the decision on the emergency import of commuter line trains will be announced by the Coordinating Ministry of Maritime Affairs and Investment.
“Now we are waiting for Luhut to decide,” said Adita.
A transportation observer from Indonesian Transportation Society (MTI), Djoko Setijowarno, said the used commuter line trains started 23 years ago. During that time, PT KAI, KCJ, KCI had never bought or invested in new commuter line trains, not even one trainset.
During that time, there were new commuter line trains produced by Inka, on loan from KFW, or purchased by the state through the Transportation Ministry that currently operates on the Yogya-Solo route.
“It is better to ‘sandwich’, if PT KCI needs 10 trainsets (Ts) per year, then procure 8 Ts of used commuter line trains and 2 Ts of new trains from Inka. And the composition of the new trains will be increased over time. Because PT Inka will not be able to meet the demand of, for example, 10 Ts in a year. Because the production period requires sufficient time,” said Djoko.
He said that the advantage was that Inka would receive orders for new commuter line train production every year and PT KCI’s commuter line operational needs would be fulfilled.
“By regularly producing commuter line trains every year, the quality of PT Inka’s products is also expected to improve,” he said.
According to him, with the current condition, the first option is to cease the operation of old trains, leaving many commuter line passengers unaccommodated. The second option is to keep operating those trains without any guarantee of travel safety. In fact, this is not meant to increase the number of commuter line trains, but to replace those that can no longer operate.
“We support both. Domestic products with the local component (TKDN) regulation can support our nation’s independence in railway technology, but we must consider the situation and the condition of domestic manufacturers,” he said.
Djoko reminded that importing commuter line trains could not undervalue domestic products and the nation’s own capabilities. “Now is the transition period to start making improvements. The import of used goods is cheap, but it also has to end,” said Djoko.
