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SOEs minister gives nod to KCI to import trains
The SOEs minister is worried that a delay in procuring new rolling stock may result in fare hikes or leave passengers stranded due to capacity constraints.
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A commuter train bound for Bogor arrives at Manggarai Station in South Jakarta on Jan. 3, 2023.
(Shutterstock/Arif Ardiansyah Susilo)
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ommuter Line operator PT Kereta Commuter Indonesia (KCI) is facing a dilemma as it needs to retire 10 trains due to old age this year, and another 19 for the same reason next year.
Its plan to import used trains from Japan has been met with resistance from the Industry Ministry because of the local content requirement (TKDN).
The TKDN, under Presidential Instruction No. 2/2022, requires the central and regional governments to allocate at least 40 percent of their procurement budgets to domestically sourced goods and services, with a priority for micro, small and medium enterprises (MSMEs) and cooperatives.
The ministry has encouraged KCI to purchase trains from a local manufacturer, particularly PT Industry Kereta Api (INKA), however, there are concerns about the latter’s ability to produce the trains on time.
State-Owned Enterprises (SOEs) Minister Erick Thohir said that, if INKA did not have enough production capacity, there was no harm in KCI buying trains from abroad as a short-term solution.
KCI, which operates trains in the Greater Jakarta area, already has plans to purchase 16 additional trains from INKA to meet its goal of serving 2 million passengers daily. The two parties are set to finalize the Rp 4 trillion (US$262.3 million) contract later this month.
But the price is reportedly considerably higher than if the company were to import used Japanese trains, and INKA cannot complete production until 2025 or 2026.
