PT INKA'S COMPETITIVE PRODUCTS PENETRATE AFRICAN, ASIAN MARKETS by Fardah

Jakarta, June 3, 2017 (Antara) - Indonesia's state-owned railway manufacturer PT Inka has been producing a variety of locomotives, trains, and cars that are competitive both in terms of their pricing and quality.

         As the first fully integrated rolling stock and automotive manufacturer in Southeast Asia, PT Inka has targeted to export its products to developing countries, particularly in South Asia and Africa.

         In fact, without much publicity, its products have been exported to Bangladesh, Sri Lanka, Malaysia, the Philippines, Thailand, Singapore, and even Australia.

         Last year, PT Inka had exported a shipment of 150 Shovon-type passenger carts ordered by Bangladesh Railways in a deal worth US$73 million. The coaches were made specifically catering to  Bangladesh's needs by the Indonesian company.

         Shawkat Jamil, the divisional traffic officer of Bangladesh Railway (BR) West Zone (Rajshahi), was last year quoted by Dhaka Tribune as saying that BR had imported the coaches under a bilateral agreement between Bangladesh and Indonesia.

         This year, PT Inka is preparing to produce 250 railway carriages for exports to the South Asian country.

         "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," Agus Purnomo, the president director of PT Inka, had noted in Madiun, East Java, last February.

         The total value of export contracts from Bangladesh and Sri Lanka reached $200 million. Purnomo admitted that his company had faced stiff competition from China in the two projects.

        On the sidelines of the IORA Leaders' Summit organized at the Jakarta Convention Center in May 2017, President Joko Widodo had held a bilateral meeting with Bangladesh Prime Minister Sheikh Hasina to discuss efforts to enhance economic relations between the two countries.

         Addressing the press after accompanying the president, Coordinating Minister for Economic Affairs Darmin Nasution said follow-ups on the already established bilateral cooperation between Indonesia and Bangladesh were discussed during the meeting.

         "We enjoy quite a large trade surplus with Bangladesh, and they wanted to order more train carriages -- as many as 250 -- but they also offered cooperation with their cheap and good pharmaceutical industry," Nasution noted.

         Furthermore, PT Inka has offered its products to Tanzania during a recent visit of the company's executives to the East African country.

         A delegation from PT Inka, led by general manager of overseas marketing and product development Bambang Kushendarto, had met officials of Tanzania's Public Works, Transportation, and Communications Ministry and representatives of Tanzania Railways Limited in Dar es Salaam on May 17 this year, according to the Jakarta Post.

         "This is expected to be the first step for PT Inka to explore the potential in the railway sector in Tanzania," Bambang said in a statement.

         During the meeting, Tanzanian Public Works, Transportation, and Communications Ministry's assistant director of railway services Festo Mwanyika responded positively to the offer, saying that affordability was one of the country's main considerations in the purchase of certain products, the Jakarta Post reported.

         "The products that we need are simple; they are affordable and can be operated well," he said before seeking a detailed explanation on the funding scheme through the Indonesia Exim Bank.

        Apart from Tanzania, a delegation of PT Inka has also visited Ethiopia to explore business potential in the African country.

         Artanto Wargandinata, an Indonesian senior diplomat, and Imam Santoso, the Indonesian ambassador to Ethiopia, accompanied the delegation comprising Wai Wahdan and Mohamad Gufron, both senior managers of PT Inka.

        Ethiopian Public Enterprises Minister Girma Amante expressed interest in PT Inka's products and said that the delegation came at the right time, as the African country is currently rebuilding its railway transportation services.

         PT Inka has set a target of winning total sales worth Rp2.6 trillion (around $195.4 million) this year. Last year, its sale target was Rp1.6 trillion (nearly $120.3 million), and the materialized sales had reached Rp1.8 trillion ($135.3 million).

        Established on August 19, 1981, PT Inka has been developing its business activities ranging from basic products to higher value added products and services in railway and transportation businesses.

         The mission to create business and technological competitiveness in railway and transportation products is focused on dominating the domestic market and staying ahead of the competition in the region of the Association of Southeast Asian Nations, in particular, and developing countries, in general.    
   Currently, PT Inka is working on several domestic projects, such as the Soekarno Hatta airport railway, Light Rail Transit train in Palembang, and Minangkabau airport train in West Sumatra.

         The demand for intercity railways is increasing in the densely populated region in the country. New passenger coaches have been introduced to capture the niche market with quality services.

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