PT Industri Kereta Api (INKA) and PT Kereta Api Indonesia (KAI) together with Swiss’ company train manufacturer Stadler Rail AG has formed a joint venture company (JVC) to build a rolling stock factory in Banyuwangi, East Java. The two state-owned firms are the government arm to build and an operator of the train and railway businesses.
For the first phase, the total investment will worth of US$100 million to produce 125 coaches per annum which will be increased to 1,000 gates per year. KAI will be the main buyers of this joint venture production company.
The factory will be built over an area of 83 hectares in Banyuwangi regency, which have sea ports as far as 3 kilometers from the plant site. Construction of the plant is expected to be completed in 2020.
Its expected the construction of the plant was a precursor railway train sales from Indonesia to the international market. In order to meet the manpower needs of the industry, Stadler Rail will establish railways vocational school in Indonesia.