Deputy Minister Tiko Regarding The Fate Of The KAI-INKA Merger: Decision In The Antara

Deputy Minister of BUMN Kartika Wirjoatmodjo (doc.humas)

The merger of PT Kereta Api Indonesia (Persero) or KAI with PT Industri Kereta Api (Persero) or INKA will be continued by the Anagata Nusantara Power Investment Management Agency (BPI Danantara).

This was conveyed by the Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo when met at Jakarta Kota Station, Tuesday, April 22.

Tiko, as he is familiarly called, said that the merger process of the two companies would be handled by the Danantara operational holding, in this case PT Bureau of Indonesian Classification (Persero) or BKI.

"It's being studied, it will be continued with the Danantara team which will continue. It's been transferred to the Operation Holding now," said Tiko.

Tiko said that the Ministry of SOEs would support efforts to merge the two state-owned companies. He also said studies from an economic and legal perspective were being carried out.

"We support it, we will review the economy again and the legal study. Hopefully it can run," 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 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.