Indonesia state own enterprises (SOEs), miner PT Timah Tbk (IDX: TINS) and PT Industri Kereta Api (INKA) plan to invest in mineral projects in Madagascar - Photo by SOEs Ministry

JAKARTA (TheInsiderStories) – Indonesia state own enterprises (SOEs), miner PT Timah Tbk (IDX: TINS) and PT Industri Kereta Api (INKA) plans to invest in mineral projects in Madagascar. Both companies will joined with joint with Madagascar’ mining firm Kraoma SA.

This was revealed during a meeting of SOEs minister Rini Soemarno with Madagascar’ minister of mines and strategic Fidiniavo Ravokatra in Madagascar on Monday (09/16). This cooperation will complement the plan of the Indonesian Railways Development Incorporated for Africa (IRDIA) and Kraoma in the construction of a railway to transport chrome production from the mine site to the export port.

The IRDIA consortium consists of INKA, PT Kereta Api Indonesia (Persero), PT Wijaya Karya Tbk Tbk (IDX: WIKA) and PT LEN Industri. As a preliminary project of this collaboration is a chrome ore transportation project which will be transported from the mining area, Brieville to the Tamatave port as far as 220 Kilometers.

The collaboration will have a positive impact on both parties in terms of infrastructure development, labor absorption ability, mining transportation efficiency and other economic additional effects, said the ministers.

Wijaya Karya had invested in Africa and targeting to handle projects with total values Rp20 trillion (US$1.42 billion) in Africa. Currently, the state-owned company has projects with total value Rp7.6 trillion.

Previously, in the meeting with Uganda’ prime minister Kirunda Muwabe in Bali, coordinating minister for maritime affairs, Luhut Panjaitan, said the country interest to cooperate with WIKA for railway jobs with an estimated path length reaches 350 kilometers.

Similar interests, also came from Angola who plans to build a track or railway track along the 400 km. Then Zimbabwe with train tracks along the 98 km and Somalia for the construction of social housing as being worked on by Wijaya Karya in Algeria.

“WIKA will soon further explore and assess the feasibility of the project plan of railway infrastructure in Africa, including working with INKA and LEN,” said CEO of Wijaya Karya Tumiyana.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com