Indonesia to buy 20 locomotives from General Electric

Indonesian railway operator PT Kereta Api Indonesia plans to purchase 20 new locomotives from General Electric for US$40 million. 

Ignasius Jonan, CEO of PT Kereta Api, said the company needs up to 200 new locomotives in five years to serve Java and Sumatra railways with total investment of US$400 million.

Kereta Api and General Electric Transportation has signed the cooperation agreement in Bandung, West Java yesterday. General Electric is expected to deliver 20 locomotives within 18 months.

But GE Transportation has a bigger plan. This company reportedly plans to invest in the railways infrastructure as well. US Embassy has invited ministry of transportation to discuss the revitalization program for railways with investment up to US$20 billion in the longer term.

Few years ago, GE CEO Jeffrey R. Immelt actually met president SBY in the State Palace to talk about the company's plan to work with state-owned PT Industri Kereta Api (INKA) to produce 200 locomotives in 10 years. GE has also established Indonesian subsidiary PT GE Lokindo. 

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