Indonesian state-owned fully integrated rolling stock manufacturer PT Industri Kereta Api (INKA) exports trains to various countries: Photo By INCA

JAKARTA (TheInsiderStories) – Indonesian state-owned rolling stock manufacturer, PT Industri Kereta Api (INKA) exports trains to several countries. While with Laos, the company joined with a number of SOEs will conduct business cooperation in various fields ranging from railroad infrastructure, mining, to agriculture .

Based on the official statement, the SOEs consortium Indonesia Railway Development Consortium (IRDC) consisting of INKA, PT LEN Industri, PT Kereta Api Indonesia, and PT Waskita Karya Tbk (IDX: WSKT) signed an agreement with Phonsavanh Group to support Laos government projects to build Petrotrade and Phaiboun Import Export Trading on Tuesday (07/09).

The companies agreed to explore cooperation with Phonsavanh in the field of railroad development from Thakek in Laos to Vung Ang Port in Vietnam. IDRC will build a 195-kilometer train line from Laos to the port area in Vietnam. The Rp9 trillion (US$634 million) project will support Indonesia’ coal exports to Laos and import potassium to Indonesia.

In train business, recently, Philippines has ordered six sets trains rail diesel type with total price Rp1.48 Trillion. According to CEO of INKA, Budi Noviantoro the train purchases had been agreed and would be sent to Philippines in mid-July, he told to Media in Jakarta on Monday (07/08).

While in the meeting with Argentine’ President, Joko Widodo offered the country to order train from INKA. Mauricio Macri responded that he does not only was interested in train but also interested to aircraft maintenance services from PT Garuda Maintenance Facilities Tbk (IDX: GMFI).

INKA says it wants to strengthen its foothold in Southeast Asia by participating in the many railway mega projects in Thailand and other countries. The company itself has a target to be able to control the carrier market in Southeast Asia in 2020.

Last year, INKA joined with Thanakorn Co. Ltd and the State Railway of Thailand set up a join venture company (JVC) INKA Thailand Co, to handle Thai government’ mega projects seven double-track railways spanning 933 kilometers worth a combined 113.66 billion baht (US$3.63 billion).

Thanakorn owns a 59 percent stake in the JVC, while INKA holds the remaining shares. Chief executive of Thanakorn, Thananot Thunyaphongphaiboon said the partnership also covers both parties’ presence in Laos, Cambodia, Vietnam, and Myanmar. While, Noviantoro, said that the cooperation between the two parties in the form of 150 locomotives delivery.

Recently, to support the export market, INKA immediately realized the construction of its second plant in Banyuwangi, East Java with an investment of Rp600 billion. The main factory of the manufacturer in Madiun, also in east Java.

As South East Asian Nations are marching toward integration of their economies through the ASEAN Economic Community, lot of the companies set up a collaborations to realized the program. In the past seven years or so, ASEAN Exchanges have taken a number of initiatives as a joint asset class for retail and global institutional investors.

US$1: 30.61 Baht and Rp14,200

Written by Willy Matrona, Email: theinsiderstories@gmail.com

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