State-owned train manufacturing firm PT Industri Kereta Api Indonesia has broken ground for the construction of a rolling stock factory in Banyuwangi, Indonesia.
The production facility, which is claimed to become the country’s largest train factory, will be built with an investment of IDR1.6tr ($112.41m).
The factory will span over more than 83ha and produce rolling stock, which will be exported to several countries.
Indonesia State-Owned Enterprises Ministry secretary Imam Apriyanto Putro was quoted by the Jakarta Post as saying that the factory will produce trains with the latest technology.
“We decided to develop the factory in Banyuwangi because the regency has a port. It will lower the costs.”
The company has teamed up with Swiss company railway rolling stock maker Stadler Rail Group to manufacture the trains.
It is believed that the facility will produce four train cars daily, which will be four times higher the capacity of INKA’s existing factory in Madiun in East Java.
PT INKA president director Budi Noviantoro told the publication that INKA secured several orders, including for 250 train cars from Sri Lanka worth $100m.
The state-controlled train maker, which has been exporting its rolling stock to Bangladesh and the Philippines, plans to expand into the Australian, Taiwanese and African markets.
The factory is expected to commence operations by 2020.
Meanwhile, PT Industri is looking to hire approximately 2,000 workers.
An open training programme at Banyuwangi Polytechnics will also be operated by the train manufacturer.