Erick Thohir to Merge KAI and INKA
streamlining State-Owned Enterprises: KAI and INKA Set to Merge
Jakarta – In a move to enhance efficiency and streamline operations,Indonesia’s Minister of State-Owned Enterprises (SOEs),Erick Thohir,announced plans to merge PT Kereta Api Indonesia (Persero) (KAI) and PT Industri kereta Api (Persero) (INKA). This merger is part of a broader initiative to reduce the number of SOEs from 47 to 30.
“The merger of INKA and KAI under one umbrella will improve coordination and synergy,” Thohir explained to the media. “Currently, KAI needs train cars but doesn’t always communicate effectively with INKA, and vice versa. this lack of coordination hinders efficiency.”
The holding company structure, already implemented in other SOEs over the past four years, aims to create a more streamlined and effective corporate structure. KAI is expected to become the parent company,with INKA operating as a subsidiary.
“This structure will create a clearer chain of command and improve communication between the two entities,” Thohir elaborated. “We’ve seen positive results from the holding company model in other SOEs, and we expect similar benefits from the KAI-INKA merger.”
Thohir emphasized that the Ministry of Finance will need to approve the merger, as they are the ultimate owners of the SOEs. He expressed optimism that the merger could be finalized next year.
The minister also confirmed that the holding company strategy will continue under the administration of President Prabowo Subianto. This indicates a long-term commitment to restructuring and modernizing Indonesia’s state-owned enterprises.
Streamlining Efficiency: KAI and INKA Set to Merge
Jakarta – In a bid to bolster efficiency and optimize performance, Indonesia’s Minister of State-Owned Enterprises (SOEs), Erick Thohir, has unveiled plans to merge PT Kereta Api Indonesia (Persero) (KAI) and PT Industri Kereta Api (Persero) (INKA). This strategic move aligns with a broader ambition to consolidate the number of SOEs from 47 to 30.
“The merger of INKA and KAI under a unified entity will substantially enhance coordination and synergy,” Thohir stated to the media. “Current communication inefficiencies between KAI, which requires train cars, and INKA, the manufacturer, obstructs operational fluidity.”
Leveraging the triumphant holding company structure implemented in other SOEs over the last four years, KAI is poised to become the parent company, with INKA operating as a subsidiary.
“This structure will foster a clearer chain of command and facilitate seamless communication between the entities,” Thohir elaborated. “The positive outcomes observed with the holding company model in other SOEs instill confidence in similar benefits for the KAI-INKA merger.”
Thohir underlined the necessity for Ministry of Finance approval, as they hold ultimate ownership of the SOEs. He expressed optimism regarding the merger’s finalization by next year.
The minister further confirmed that the holding company strategy will remain a cornerstone under President Prabowo Subianto’s administration, signaling a sustained commitment to restructuring and modernizing Indonesia’s state-owned enterprises.