KAI and INKA Merger: Danantara Aims to Conclude Process Before 2027
- State-owned railway operator PT Kereta Api Indonesia (KAI) is moving closer to merging with rolling stock manufacturer PT Industri Kereta Api (INKA) as a subsidiary ahead of a...
- The corporate merger process between the two state-owned enterprises is actively underway under the direction of the Danantara investment management agency, according to Danantara Chief Operating Officer and...
- Under the finalized corporate structure, KAI will operate as the parent holding entity, while INKA will transition into a sub-holding subsidiary.
State-owned railway operator PT Kereta Api Indonesia (KAI) is moving closer to merging with rolling stock manufacturer PT Industri Kereta Api (INKA) as a subsidiary ahead of a targeted consolidation date, according to officials managing the state enterprise restructuring.
Consolidation Timeline and Corporate Structure
The corporate merger process between the two state-owned enterprises is actively underway under the direction of the Danantara investment management agency, according to Danantara Chief Operating Officer and BP BUMN Head Dony Oskaria. Speaking at the Ministry of Food Security office in Central Jakarta on Sept. 29, 2026, Dony indicated that the transaction is on track to conclude before an initial target date of Jan. 1, 2027.
Under the finalized corporate structure, KAI will operate as the parent holding entity, while INKA will transition into a sub-holding subsidiary. KAI President Director Bobby Rasyidin previously confirmed during a June 3, 2026, hearing with House of Representatives (DPR) Commission VI in Jakarta that the consolidation falls under a direct directive from Danantara to streamline the state railway sector.
Formal preparations for the merger began with a kick-off meeting on July 21, 2026, involving representatives from Danantara Asset Management, the boards of directors of both KAI and INKA, a project management office (PMO) team, and outside consultants.
Financial Restructuring and Manufacturing Capacity
The structural integration aims to reinforce domestic manufacturing capabilities as the Indonesian government pivots toward expanded public rail transportation networks. However, Dony noted that INKA faces severe operational and financial hurdles that require comprehensive governmental intervention before the subsidiary can support national demand.
According to government disclosures, INKA carries an accumulated loss of Rp 677 miliar alongside an unsustainable loan burden of Rp 4,7 triliun, resulting in negative equity. To address these liabilities, the state plans a total operational overhaul that includes capital injections alongside corporate restructuring so the manufacturer can achieve financial stability and meet future production requirements.
Equity-nya negatif, ada unsustain loan Rp 4,7 triliun. Jadi teman-teman bisa bayangin semua dirapikan. INKA itu juga punya problem keuangan. Nah karena itu harus benahi. Supaya nanti kedepannya INKA ini bisa menjadi industri transportasi publik kita,
Dony Oskaria, Danantara COO and BP BUMN Head