Made in Indonesia: PT INKA in focus. Interview with Bambang Jatmika and in-depth profile

Indonesia: PT Industri Kereta Api (PT INKA) is one of Southeast Asia’s leading rolling stock manufacturers, building equipment for both passenger and freight services. As it fulfils major orders from national operator PT Kereta Api Indonesia (PT KAI), expands its exports and increases production capacity, the company aims to strengthen its engineering capabilities and increase the localisation of key components. At the same time, preparations are under way to integrate PT INKA into PT KAI, a move scheduled to take place in early 2027.

PT INKA President Director Bambang Jatmika spoke exclusively to ROLLINGSTOCK about the company’s current production programme, international projects and technological priorities. The editorial team has also compiled an extensive body of information on the company’s activities from open sources.

Production facilities and product range

PT INKA was established in 1981 on the basis of railway workshops in Madiun previously owned by Indonesia’s state railways. Today, the company also manufactures at a site in Banyuwangi, and both facilities are located on the island of Java.

PT INKA manufactures passenger coaches, freight wagons, electric and diesel multiple units, locomotives and urban rail vehicles. It also develops specialised rolling stock, including inspection and measurement cars. Most of PT INKA’s range is designed for 1,067 mm gauge, the main gauge in Indonesia and in the Philippines, where the company has completed several export contracts. At the same time, output for 1,435 mm gauge is growing, both under domestic contracts (for Jakarta’s new rail systems and on the island of Sulawesi) and for deliveries to Australia. The company also has experience of building rolling stock for 1,676 mm gauge, for example for Bangladesh.

Banyuwangi plays a key role in expanding production. According to Bambang Jatmika, the plant is being developed to build multiple units and other technologically advanced rolling stock, with a design capacity of up to 250 cars a year.

Over the past decade, PT INKA has built 498 multiple-unit cars, including 442 EMU cars, 34 DEMU cars and 22 DMU cars, according to the company’s own figures. They were supplied for light rail systems in South Sumatra and Greater Jakarta, commuter services and other projects in the domestic and export markets.

Looking ahead, PT INKA intends to increase the share of technologically advanced products. “From a product-strategy perspective, PT INKA is strengthening its capabilities in higher-value and technology-intensive rolling stock, particularly products requiring greater engineering and system integration. At the same time, the company is developing local supporting manufacturers and strengthening the domestic railway supply chain to increase the value created within Indonesia,” says Bambang Jatmika.

Order book and production programme

Indonesia is PT INKA’s main market, and its largest customer is state-owned operator PT KAI and the companies within its group. Major contracts to renew the passenger and freight fleets largely shape PT INKA’s production programme.

One of the largest projects is the supply of 612 Stainless Steel New Generation (SSNG) passenger coaches for PT KAI’s intercity services. The contract, worth around IDR 5.5 trn ($303.3 mln; here and below, conversions are at the exchange rate at the time of writing), covers coaches with stainless steel carbodies and runs from 2023 to 2027. According to information published in October, PT INKA still had 177 coaches to complete under the order.

Another major order covers EMUs for Jakarta’s commuter network. In 2023, PT INKA received a contract from commuter operator KAI Commuter (part of PT KAI) for 16 twelve-car trainsets worth around IDR 3.8 trn ($209.6 mln). In May 2025, the CLI-225 EMUs underwent certification testing on the capital’s commuter routes. By mid-October, seven trainsets were in service, while the remaining nine were at various stages of production, testing and certification.

Freight wagons account for a significant share of the order book. Under a contract with PT KAI, the company has built 1,125 four-axle wagons for coal traffic in South Sumatra. The order, worth around IDR 1.05 trn ($57.9 mln), was completed in October.

According to Bambang Jatmika, the growth in production activity and revenue in 2025 was largely driven by the execution of major contracts for new-generation passenger coaches and EMUs for KAI Commuter. The company also intends to increase its output of locomotives and specialised rolling stock. “Locomotives remain strategically important for PT INKA, particularly for freight operations and railway networks where electrification is limited. Our objective is to strengthen our engineering, manufacturing, maintenance-support, and localisation capabilities in this segment,” the head of PT INKA says. “PT INKA also continues to develop engineering capabilities for specialised railway equipment, including inspection and measurement vehicles, according to customer and operational requirements.”

Exports and international cooperation

In international markets, PT INKA operates both as a supplier and as a manufacturing partner. The company names Australia and New Zealand among its main export markets, where it has been working with Australian company UGL since 2021.

The partnership with UGL primarily covers freight wagons for New Zealand operator KiwiRail. The companies have signed four contracts for a total of 1,504 wagon kits, of which PT INKA had delivered 1,294 by September. UGL is the technology partner for the project, under which the wagons are assembled at a KiwiRail facility near Dunedin.

The latest contract covers 340 container flat wagon kits: 290 for 40 ft containers and 50 for 50 ft containers. PT INKA shipped 130 kits in March and another 120 in August. Delivery of the remaining 90 is due to be completed in November.

Cooperation with UGL also extends to the Australian market. Under a contract for 50 locomotives, PT INKA supplies kits for subsequent assembly at UGL’s facilities. In July, the company shipped the 17th and 18th kits to Australia. Deliveries under the contract will continue until 2027.

“These projects provide PT INKA with international references and strengthen our position in global railway supply chains,” says Bambang Jatmika.

Export projects also draw on state financial instruments. In August, Indonesia Eximbank announced that it had provided PT INKA with $8.5 mln in financing for the contract for 340 wagon kits for UGL. In 2024, the bank provided INKA Multi Solusi, a PT INKA subsidiary, with financing and guarantees totalling $11.9 mln for export projects in New Zealand.

As it develops international cooperation, PT INKA intends to build on its domestic market experience and expand technological partnerships with foreign companies. The company will “continue to work with international partners through technology transfer, co-development, and co-manufacturing. This approach allows PT INKA to strengthen and leverage its own capabilities while remaining flexible in responding to different customer and operating requirements,” Bambang Jatmika explains.

Localisation and technological development

PT INKA aims to increase the share of work carried out in Indonesia and of locally manufactured components. “PT INKA’s core in-house capabilities include carbody manufacturing, mechanical integration, assembly, testing, and engineering,” says Bambang Jatmika. “Over the next three to five years, localisation priorities include bogies, wheels and axles, propulsion and electrical systems, control systems, and other critical railway components.”

According to PT INKA figures for September, the Indonesian domestic content level (TKDN) is 40% for DMUs and 45.01% for DEMUs. For EMUs, the company gives a range of 45-53%, although these figures are based on internal assessments and have not yet been certified. The TKDN methodology takes into account not only the origin of physical components but also the contribution of design and engineering work.

“Our objective is therefore not simply to eliminate external cooperation, but to continuously strengthen PT INKA’s internal engineering capability and technological independence,” Bambang Jatmika stresses.

Alternative energy sources are a separate area of development. “Current development activities include battery electric multiple unit (BEMU) concepts, battery energy-storage applications, and battery-powered tram studies. Hydrogen technology is also being evaluated for applications where longer range and greater energy capacity may be required,” says Bambang Jatmika. “These technologies are currently part of PT INKA’s technology-development roadmap. Their wider application will be pursued progressively in line with technology validation, safety requirements, customer demand, and project feasibility.”

In 2021, PT INKA built a two-car battery tram-train. In November 2024, it was tested on tram and railway infrastructure in Surakarta, where it was used to trial energy storage solutions for urban rail transport.

A two-car hybrid laboratory train was also built in 2023 for Madiun State Polytechnic for research and specialist training. Its multi-mode power system combines four energy sources: a diesel generator, batteries, overhead line power collected by a pantograph, and hydrogen fuel cells. The train is designed for training specialists and researching different traction technologies.

Despite the existence of prototypes, the potential for wider use of battery and hydrogen technologies is still being studied. Some hybrid solutions, however, are already in commercial service. In October, the company reported that three-car DEMUs with batteries were operating on the 1,435 mm gauge Makassar – Parepare line in South Sulawesi. The batteries work alongside the diesel generator and allow the train to run for a limited time with the engine shut down.

The company gained experience in integrating automated systems through projects including LRT Jabodebek. For this 1,435 mm gauge light rail system serving Greater Jakarta, PT INKA built six-car trains fitted with a Siemens automatic train operation system at GoA3: they run without a driver, although a staff member is present in the cab for non-driving tasks and emergency response.

Building on this experience, PT INKA is developing capabilities in automated and driverless train operation. “This involves integration with signalling, train control, communication, depot systems, and operational systems, with a strong focus on system integration, safety, and validation,” says Bambang Jatmika.

Financial results and operational challenges

Major orders from the national operator have driven revenue growth at PT INKA, but the expansion has been accompanied by a deterioration in financial results. According to data from Indonesian rating agency Pefindo, the company’s revenue reached IDR 3.76 trn ($207.3 mln) in 2025, up 21.8% year on year. However, PT INKA posted a net loss of IDR 813.4 bln ($44.8 mln), compared with a profit of IDR 51.8 bln ($2.8 mln) a year earlier. Losses continued in the first half of 2026.

Delays in delivering EMUs to KAI Commuter have been one of the main operational problems. In August, Pefindo downgraded PT INKA’s credit rating from idA- to idBB with a negative outlook. The agency attributes the deterioration in creditworthiness primarily to the EMU delivery delays, which are slowing cash inflows. Other risk factors include the company’s debt burden and its heavy dependence on its largest customer. Indonesian outlet IDXChannel, citing PT INKA, named working capital shortages and difficulties obtaining permits to transport rolling stock from the Banyuwangi and Madiun plants to Depok among the reasons for the delays.

The working capital shortfall is also complicating the production programme as a whole. In October, PT INKA pointed to the need for additional financial support and for production plans to be aligned with available funding. The company also reported closer engagement with suppliers and preparations to restructure its bank liabilities, including extending repayment terms.

Meanwhile, PT INKA’s management is working to improve production efficiency and cost control: like most players in the global market, the Indonesian manufacturer faces price pressure from suppliers. According to Bambang Jatmika, the company is optimising procurement, developing cooperation with local suppliers, increasing localisation and improving working capital management. “Increasing production capacity must be accompanied by stronger quality, reliability, and project execution,” he stresses, speaking about the principles of long-term production sustainability.

Integration with KAI and strategic outlook

In 2026, the Indonesian authorities began implementing a plan to integrate PT INKA with its largest customer, PT KAI. The manufacturer is expected to come under the operator’s control, with their activities coordinated under a single industrial and operational strategy. In many respects, this may also be a response aimed at stabilising the company before its next stage of development.

The integration process began in July with the participation of representatives of state investment agency Danantara, the management of both companies and an integration task force. In September, PT KAI President Director Bobby Rasyidin announced the completion of due diligence on PT INKA and preparations for a conditional capital transfer. The integration is scheduled to take effect on 1 January 2027, although Danantara representatives have said the corporate consolidation could be completed earlier.

One of the aims of the reorganisation is to align the operator’s future requirements with PT INKA’s production capabilities. Closer coordination is expected to cover procurement planning, rolling stock development and manufacturing, testing and commissioning, as well as to support standardisation, localisation and better product quality. “Integration is not merely about strengthening the relationship between the operator and the manufacturer,” Bambang Jatmika said of the process in July. “It is a strategic step towards building an integrated national railway industry, from planning requirements and developing technologies to design, manufacturing, and passenger services.”

The reorganisation also involves expanding PT INKA’s activities beyond building new rolling stock. In particular, PT KAI plans to transfer its Balai Yasa workshops to the manufacturer. This will combine PT INKA’s design and manufacturing expertise with the operator’s experience in maintenance, repair and modernisation. As a result, the company expects to develop its maintenance, repair and overhaul (MRO) business. Under PT KAI’s plans, PT INKA is to strengthen its financial position and build a sustainable services business by 2029.

Long-term workload for PT INKA’s plants could come from PT KAI’s fleet renewal programme to 2030, presented in September. It provides for the purchase of 151 diesel locomotives, 114 EMUs for Jakarta’s commuter network, 26 hybrid trains, 15 DMUs, 328 passenger coaches and 653 tank wagons, with production to be organised at the national manufacturer’s facilities. PT KAI also forecasts demand for another 156 EMUs by 2040. These are, however, prospective procurement plans rather than contracts signed with PT INKA.

In the coming years, PT INKA intends to expand production capacity, strengthen its engineering capabilities and localise key components, while developing exports and international cooperation. Delivering these plans will depend on restoring financial stability, improving product reliability and meeting delivery schedules. Integration with PT KAI is intended to bring the operator’s requirements and the manufacturer’s capabilities closer together, laying the groundwork for the further technological development of Indonesia’s railway industry.

Source : ROLLINGSTOCK - https://rollingstockworld.com/locomotives/made-in-indonesia-pt-inka-in-focus-interview-with-bambang-jatmika-and-in-depth-profile/