REPUBLIKA.CO.ID, JAKARTA -- The state-owned rolling stock manufacturing company PT Industri Kereta Api (Inka) said it hopes to build a new factory in Banyuwangi to produce high speed trains this year.
The present market development forced the company to set eye on high technology, acting chief executive of PT Inka M. Nur Sodiq said here on Monday pointing to government plans to build medium speed train to link Jakarta and Surabaya,
Sodiq said unless the company has the technology and the factory it would not have chance of taking part in the big project, adding, "We would not be invited to the project tender."
He said Inka has been quite competitive in passenger train construction with 72 percent produced by Indonesians.
He said the Banyuwangi factory would have capacity four times larger than that of the Madiun factory.
"Our target is three units of carriage per day or twice more than 1.5 units per day on the average in Madium.
Sodiq said the project is in the phase of feasibility study, adding land clearing has been wrapped up.
Construction will be in two phases with the first phase to cost around Rp600 billion and the second phase Rp400 billion, bring the total cost toRp1 trillion.
The factory is expected to come on stream in mid 2019, Sodiq said.
Executive Vice President of Inka Bambang Kushendarto said in improving specifications , the company recruits foreign experts such as from Japan and Germany.
Inka has to increase its production capacity to meet growing demand including from abroad such as from Bangladesh, Bambang said.
Demand is also growing in the country such as from light train transit (LRT) project in Palembang and Greater Jakarta and long distance train of PT KAI, he said.
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