Stadler Rail, a train manufacturing company based in Switzerland, has officially signed an agreement with PT INKA, an Indonesian train manufacturing company.
The companies are set to collaborate in a joint venture to establish a train factory in Banyuwangi, East Java.
The agreement was signed by Stadler Rail Executive Chairman Peter Spuhler and President Director of PT INKA Budi Noviantoro at Stadler Rail’s headquarters in Bussnang, Switzerland. Indonesia’s State-Owned Enterprises (SOEs) Minister Rini Soemarno, and Indonesian Ambassador to Switzerland Muliaman D. Hadad, were among the attendees.
According to Minister Soemarno, the new investment will support the development of transport facilities in Indonesia due to the growing number of train passengers. Ambassador Hadad also applauded the move, citing that the investment and technology transfer from Switzerland will meet the needs of the growing number of trains in Indonesia.
The products from the joint venture also possess the potential to be exported to different regions of Asia. About 125 train carriages are expected to be produced annually following a total investment of US$100 million. The number will soon increase to about 1,000 carriages per year. PT KAI, which is Indonesia’s state railway company, will be the key buyer for the train carriages.
The train factory will be built in Banyuwangi city, on an 83-hectare plot which is 3km from the local seaport. It is expected that the factory will start producing trains in 2020. Aside from building a factory, Stadler Rail will also launch a railway vocational school in Indonesia.