Business Synchronization, Erick Thohir Will Merge KAI With INKA

SOE Minister Erick Thohir (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir plans to carry out a merger of PT Kereta Api Indonesia (Persero) with PT Industri Kereta Api (Persero) or INKA.

Erick said that the merger was part of the SOE Ministry's plan to cut the number of state-owned companies to 30 from the current 47 companies.

"That's a proposal for 47 to 30, right, one of them is how INKA and KAI become one umbrella," he said.

Erick explained that the planned merger of INKA and KAI was needed for business synchronization between the two companies. Especially related to the submission of serial needs by KAI to be produced by INKA.

"It's impossible for KAI to need a pointer, but not to talk to INKA, the INKA also doesn't coordinate if for example this is necessary. So it's just synchronization," he said.

According to Erick, in the last four years INKA and KAI have improved coordination. Even so, he stressed, the merger of this corporate structure will further facilitate the coordination of the two.

"It's just that, in terms of corporate structure, it's better to be father and son. So, concretely, it's better," he said.

In this merger plan, Erick said KAI would become a holding company or holding company, while INKA became a subsidiary. Then, he said the Ministry of SOEs would immediately submit a merger proposal to the Ministry of Defense for approval.

After obtaining approval from the Ministry of Finance, continued Erick, then the stages of this corporate action will be carried out.

Even so, Erick has not been able to reveal when the merger targets of the two state-owned companies could be realized.

"Of course we will push for the process, later the process from the Ministry of Finance will be approved because our manager has ownership from the Minister of Finance. We will propose there," he explained.