Increase Production, INKA Proposes PMN 2025 Of IDR 976 Billion

Illustration (Photo: Doc Antara)

PT Industri Kereta Api (Persero) or INKA proposed a State Capital Participation (PMN) fund for the 2025 fiscal year of IDR 976 billion.

President Director of PT INKA Eko Purwanto said,

The budget requirement of Rp976 billion in 2025 is needed to increase the production capacity of trains in the KAI Group, especially commuter-driven trains, both KRL and other electric trains.

"PT INKA proposed Rp976 billion for needs as we conveyed above," he said in a meeting with Commission VI of the DPR, at the DPR Komplkes, Jakarta, Tuesday, July 9.

Eko added that the factory capacity owned by PT INKA is not comparable to the current increase in train needs.

Injections of PMN funds are also needed to improve the quality and speed of providing railway products and develop production facilities that can produce train components that are often imported from abroad.

"So that some components that have been imported can be reduced and we can provide them domestically," he explained.

According to Eko, this PMN is also useful for the state because it can fulfill domestic rail transportation facilities, increase the level of domestic coponents (TKDN) and strengthen the national railway industry exosystem.

Meanwhile, for the community, continued Eko, the provision of PMN can also add jobs, fulfill transportation facilities, and increase industrial independence.

As for companies, PMN will develop the mastery of PT INKA's railway technology.

Eko said this capital injection was needed considering the age of the INKA production machine was old.

In fact, almost 40 percent of the company's production assets are over 25 years old, of which 2 percent are over 50 years old. With this capital injection, the company can carry out operational efficiency.

"This PMN will not only increase capacity, but also fulfill the needs of domestic railway facilities, especially later for domestic supply chain, it can increase," he said.