Indonesian railway company Industri Kereta Api (Inka) loads a railway carriage at Tanjung Perak Port in Surabaya, East Java, for shipment to Bangladesh on Jan. 20, 2019. (B1/Photo)

SOEs Bid to Export 1,050 Train Cars to Bangladesh


FEBRUARY 28, 2020

Jakarta. State-Owned Enterprises Minister Erick Thohir said several Indonesian SOEs in the railroad sector have the opportunity to take part in a bidding process to manufacture 1,050 train cars for Bangladesh Railway.

"We've been given the opportunity to participate in the tender for 1,050 train cars worth hundreds of millions US dollars," Erick said in Jakarta on Friday.

Erick said the government wants SOEs to help advance the Indonesian railroad industry by not only focusing on the domestic market but also supplying other countries such as Bangladesh.

"Cooperation between Indonesia and Bangladesh have been excellent. The partnership established in 2005 between state-owned companies in the railway sector has been worth nearly $181.6 million," Erick said.

On Friday, the minister received a visit from the Bangladesh Railroad Minister Md. Nurul Islam Sujon. Erick was accompanied by the directors of Industri Kereta Api (INKA), Kereta Api Indonesia (KAI) and Len Industry at the meeting.

In September last year, INKA exported 22 train cars to Bangladesh as part of a series of deliveries that began with 50 MG (Meter Gauge) trains ordered by Bangladesh Railway through the Chittagong Port in January 2019.

That was followed by the delivery of 200 BG (Broad Gauge) trains – 26 of them in July 2019, also through the Chittagong Port.

In total, INKA has produced 250 train cars for Bangladesh Railway. The deal was sealed in a bidding process won by INKA in 2017 with a contract value of $100.9 million.