KAI Boss Opens Voice About Merger Plan With INKA

President Director of PT Kerarata Api Indonesia (Persero) or KAI Didiek Hartantyo (center). (Photo: Mery Handayani/VOI)

JAKARTA - President Director of PT Kerarata Api Indonesia (Persero) or KAI Didiek Hartantyo opened his voice about plans to merge companies or merge with PT Industri Kereta Api (Persero) or INKA.

Didiek said that his party was still waiting for directions from SOE Minister Erick Thohir. He also admitted that he had just learned about the planned merger a few days ago.

"We are waiting for the Minister's direction, because we just got information from the Minister yesterday," he said at the BUMN Ministry Office, Jakarta, Monday, December 23.

Didiek said that even if this merger is decided to be carried out next year, then his party is ready to run it.

"If the shareholder's direction, we are ready," he said.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir planned 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 when met at the BUMN Ministry office, Jakarta, Tuesday, December 17.

Erick explained that the planned merger of INKA and KAI was needed to synchronize the business between the two companies.

Especially related to the application for a series of 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 will be the holding company or parent company, while INKA will become 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.