Indonesia aims to complete KAI-INKA rail merger before January 2027

The Indonesian government is moving ahead with a merger that will unite the state-run railway operator PT Kereta Api Indonesia (KAI) and the state-owned train builder PT Industri Kereta Api (INKA) before January 2027. Dony Oskaria, who leads the State-Owned Enterprises Regulatory Agency (BP BUMN) and serves as COO of Danantara, explained that the consolidation is part of a broader sector-based restructuring and that PT INKA will be placed under PT KAI after the corporate process is complete.

PT KAI President Director Bobby Rasyidin previously told a parliamentary hearing that the transaction mechanism, known as inbreng, will be executed in September 2026 on a conditional basis, with full integration slated for 1 January 2027. He added that KAI has finished due-diligence on all aspects of INKA. Following the merger, INKA’s scope will expand to include KAI’s rolling-stock maintenance centre, Balai Yasa, giving the manufacturer a role in both production and upkeep of railway equipment.