Increase Production Capacity, INKA Build Rail Factory Worth Rp1, 6 Trillion in Banyuwangi

INDUSTRY.co.id - Jakarta - PT Kereta Api (Persero) is working to increase production capacity in order to support the development program of national railway industry and to answer the challenge of railway facility needs from abroad.

The move is realized by building a railway workshop factory located in Ketapang Village, Kalipuro District, Banyuwangi Regency.

President Director, Budi Noviantoro, said that the company is currently completing the licensing and design process for a modern factory that will be used to produce aluminum and stainless steel railway facilities.

"The first phase of the development process is planned to begin at the end of 2018 and can start operating in early 2020. Total investment from this project development reached Rp 1.6 trillion," Budi said through a press release on Monday (2/7/2018).

The factory that utilizes the 84 hectares of land, continued Budi, is also a synergy between Inka with PTPN XII. The modern factory is expected to become the second railway assembly workshop after the workshop in Madiun.

"The proximity of the workshop location to Tanjung Wangi port which is managed by PT Pelindo III will be very supportive to the company in the process of delivering finished products by sea, both for export and for domestic needs outside Java," he said.

Inka noted that the contribution of the company's export sales has increased in the last three years, reflected in the value of export sales contracts of Rp850 billion in 2015 and increased to Rp1.33 trillion in 2017.

While the export destination countries are Bangladesh, Malaysia, Singapore, Australia and the Philippines.

Minister of SOE Rini Mariani Soemarno expects the establishment of this workshop factory can give positive contribution for industrial progress in Banyuwangi regency and economy for society around and society in Banyuwangi regency in general.

"I am proud that PT Inka is continuing to expand its business, many countries are buying RI-made railways, hopefully the construction of this new factory will run smoothly and can be finished as targeted," said Rini.