INKA to Become a KAI Subsidiary as Danantara Consolidation Targets 1 January 2027
KAI's president director says the conditional sale and purchase agreement with the sovereign wealth fund is being finalized, creating a single end-to-end rail industry group.
The integration of state rail manufacturer PT INKA into operator KAI has entered its final stage, with KAI President Director Bobby Rasyidin saying the Conditional Sale and Purchase Agreement involving the Danantara sovereign wealth fund is being finalized and will be announced soon, with consolidation targeted for 1 January 2027.
Speaking in Jakarta on 10 November, Bobby said the merger aims to build an end-to-end rail industry ecosystem comparable to Germany's or Switzerland's, arguing that KAI's operational experience will enrich INKA's design work and that all operational requirements will become transparent across the combined group.
The consolidation reorganizes the domestic rail market's buyer structure into a single group spanning operations, design, production, quality assurance and maintenance. It comes in the same month KAI prepares to sign a contract for 23 new trainsets, with delivery obligations that will carry substantial documentation and traceability requirements through 2027-2028.