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Economy

PT INKA Ready to Manufacture 340 Railway Carriages for Exports

Railway carriages made by PT INKA unloaded in a Bangladesh port.

 

 

Madiun, East Java 08 Jumadil Awwal 1438/05 February 2017 (MINA) – Indonesias state-owned railway manufacturer PT Industri Kereta Api (INKA) is preparing to produce 340 railway carriages for exports to Bangladesh and Sri Lanka.

“The process is now underway. All necessary requirements have been fully met. A total of 250 carriages will be exported to Bangladesh and 90 others to Sri Lanka,” Antara quoted the company’s president director, Agus Purnomo, ias telling newsmen here on Saturday.

He said the total value of export contracts from Bangladesh and Sri Lanka reached US$200 million.

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He expressed hope that the products would clear technical tests, with confirmation about them from Bangladesh expected in March or April and by the end of this month from Sri Lanka.

Purnomo expressed optimism that the two projects would be grabbed by PT INKA, considering the fact that the company had earlier successfully completed orders from both nations.

PT INKA exported 150 railway carriages to Bangladesh worth $72 million last year.

“INKA has also met orders from Sri Lanka, Malaysia, the Philippines, Thailand, Singapore, and Australia before,” he noted.

 

Facing stiff competition from China

Purnomo admitted that PT INKA had faced stiff competition from China in the two projects. He remarked that INKA had competed in terms of price, as the interest rate in China was lower.

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“In terms of quality, I believe products from INKA and China are at par with each other. It is only about price,” he stated.

He noted that the local content in the carriages, to be exported to Bangladesh and Sri Lanka, reached over 60 percent and could represent domestic products.

“Some components are indeed imported, but they reach only 25 to 30 percent, he pointed out.

He expressed hope that the government would lend complete support, so the two projects could be secured to further boost the companys export market. (T/RS05/RS01)

Mi’raj Islamic News Agency (MINA)

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