SOE Minister Erick Thohir signals merger of INKA and KAI
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Kontan Online - Menteri BUMN Erick Thohir beri sinyal merger INKA dan KAI
18 December 2024
Kontan.co.id – Jakarta. State-owned Enterprises Minister Erick Thohir has indicated plans to merge two state-owned companies in the transportation sector: PT Kereta Api Indonesia (Persero), known as KAI, and PT Industri Kereta Api (Persero), known as INKA.
"One of the considerations is how INKA and KAI can operate under the same umbrella," Erick stated at the SOE Ministry building in Jakarta on Tuesday (17/12).
Erick revealed that the plan to merge these two state-owned companies is part of an effort to streamline the number of SOEs from 47 to 30.
Erick mentioned that his agency is currently preparing the merger process to secure approval from the Finance Ministry.
"We will support the process, but the approval must come from the Finance Ministry. We act as the operator, while ownership lies with the Finance Minister, so we will present the proposal to them," he explained.
Erick noted that over the past four years, both companies have been in continuous coordination. Therefore, merging INKA and KAI will strengthen and simplify their corporate structure, enhancing their ability to work together.
"It is better for the corporate structure, making them like a parent and subsidiary. This arrangement becomes more concrete," he stated.
Furthermore, Erick mentioned that he cannot guarantee when the merger will be completed. However, he assured that both companies will remain part of the SOE holding next year. "We are preparing for it, as it requires a timetable," he said.
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