Allocate Rp 600 Billion, INKA Build Factory in Banyuwangi

INDUSTRY.co.id - Jakarta - PT Kereta Api (INKA) will develop a railway factory in Banyuwangi regency. It is targeted that the plant with an investment value of Rp 600 billion will start operating in the second half of 2019.

Finance and Human Resources Director of PT INKA, Mohamad Nur Sodiq said that PT INKA is currently the only railway industry in Indonesia with a growing performance. In addition to meeting the needs of domestic trains, PT INKA also receives many export orders of railway cars from various countries.

"As the only national railway factory with factory location in Madiun currently its production capacity is over loaded. So, we are looking for locations for company development. With various considerations, the location we finally set Banyuwangi. For that, we ask for support from the local government, "said Sodiq in his press statement on Sunday (22/10/2017)

Sodiq said, the current order of trains being handled by PT INKA quite a lot, both domestic and overseas demand. For domestic purposes, Sodiq said, there are several projects under development. Among others, the Soekarno Hatta Airport - Sudirman Airport KRL project in Palembang prepared for the SEA Games, LRT Jabodetabek, also projects from PT KAI to replace old train carriages.

"Not to mention we are also working on train orders from several countries such as Bangladesh. We also participate in tenders in Zambia, Srilanka and Nigeria. So far we have also fulfilled train orders from all countries in ASEAN. So we need a bigger factory to build all the trains, "said Sodiq.

The planned industrial location to be built in Banyuwangi, said Sodiq is located in Secang area, Kalipuro District on an area of ​​200 hectares. The land belongs to the state plantation company PTPN XII. "We have reported to the Minister of SOEs, and he supports it because the land is also owned by state-owned companies, so the affairs will be easier," said Sodiq.

This location is assessed to meet various strategic requirements needed by PT INKA, especially to fulfill export orders. One of them is close to Tanjungwangi port which is expected to facilitate export shipments. In addition the location is also close to the rail network.

"In that location the supporting infrastructure is complete. The distance to the harbor is very close. In addition to the masterplan Banyuwangi, the area is planned to be bypassed by the highway. Very efficient later, "said Sodiq.

Sodiq targets the development of the industry with an investment value of Rp. 600 billion will begin starting in March 2018 and the plant will begin operations in the second half of 2019. Later the plant built in Banyuwangi will be used as a factory-based stainless steel and aluminum.