Indonesia seeks more local content in Jakarta-Surabaya train project

  • Transportation Minister Budi Karya Sumadi has said that the government is seeking more involvement of local contents in the Jakarta-Surabaya train project, particularly rolling stock components that can be manufactured by state-owned train maker PT Industri Kereta Api (INKA).
  • He said on 31 Jul that PT INKA could at least manufacture 40% of components that would be imported. However, the project was bound by an agreement with the Japan International Cooperation Agency (JICA) and therefore, a renegotiation was needed, Budi said, adding that the agreement with JICA specified which components had to be imported from Japan though there was still have room as the project is yet to be started.
  • Meanwhile, Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said that the effort to increase local contents to a number of infrastructure projects was to reduce imports as currently Indonesia suffered from current account deficit that among other gave pressure on rupiah.
  • Budi said that the government would also seek more involvement of local connects for a Patimban seaport project in Subang, West Java. He said the port and railway projects had local contents around 70% and 80% respectively. “Maybe, we can increase the local contents by around 5% to 10% in the train project and around 5% for Patimban port project,” he added.

External Link: