Planned Merger Between INKA And KAI, Observer: The INKA Project In Congo Can Be Taken By China

Illustration of a train locomotive. (Photo: PT INKA)

JAKARTA - BUMN Minister Erick Thohir's plan to merge PT INKA (Persero) with PT Kereta Api Indonesia (KAI) was rejected by many parties. Transportation observer, MS Hendrowijono, considered the merger plan to be inappropriate.

"Maybe the goal is right but in my opinion it is not right. But it is not right if manufacture is combined with the operator," said Hendrowijono in a statement received by VOI, quoted on Thursday, October 29.

Hendrowijono agreed with the statement by a member of Commission VI DPR-RI Mufti Anam who asked that the plan to merge INKA with KAI be reviewed. The reason is, it needs an in-depth study of the merger of two large state-owned companies.

According to Hendrowijono, the options that the government was discussing were actually aimed at making INKA and KAI progress, and for the state to benefit. It's just that he said, currently INKA already has a new factory, high fixed costs, and needs projects to boost its performance.

But on the other hand, the demand for trains in the domestic market only comes from KAI. Even then, according to Hendrowijono, only happened in the last three years.

"In five years, all KAI trains will be new, but should INKA be closed? I urge it needs more penetration into the global market, and that must be achieved. If no INKA project and acquisition takes place, then of course it will burden the finances of KAI which is being affected again. pandemic COVID-19, "he explained.

He is also worried that if INKA becomes a subsidiary, the Congolese government will turn right and choose China or Turkey. Hendrowijono admitted that he could not imagine if a project worth hundreds of trillions would just disappear.

"If this happens, it will be twelve. Megaprojects are canceled, INKA enters KAI without a project, what happens is that KAI collapses," he explained.

For information, PT INKA (Persero) received an agreement on a railroad procurement project for Congo worth US $ 11 billion or the equivalent of Rp.161.7 trillion (exchange rate of Rp.14,700 per US dollar). The plan is for INKA to produce passenger trains, freight trains and electric trains (KRL) for the country.

This was marked by the signing of a business contract by INKA Director Budi Noviantoro with representatives from the five Congolese BUMNs involved in the megaproject. The signing took place at the INKA office in Madiun, East Java on Wednesday, October 14.

Transportation observer from MTI (Indonesian Transportation Society) Djoko Setiowarno said, PT INKA, is currently experiencing quite good development.

"Innovation and creativity in business development have begun to show results. Given the trust of other countries to produce trains and locomotives. The results of synergies with several BUMNs have earned them the trust to build a train network and its facilities that connect several countries in Africa," said Djoko.