Tuesday, February 3, 2009

Inka Expects 30% Rise in Revenue on Increased Orders

Despite an economic slowdown, state owned train manufacturer PT Industri Kereta Api (Inka) is looking at a 30 percent rise in revenue this year, boosted by greater production capacity and overseas expansion.

"This year we will be expecting a 30 percent increase in revenue to Rp 714 billion (around US$61.4 million) from Rp 548 billion last year," president director Roos Diatmoko said Monday.

Out of this total projected revenue, Rp 358 billion was expected to come from orders from the state ministry of transportation, another Rp 309 billion from the state railway company, PT KAI and the rest from the Jakarta city administration for supply of reticulated buses.

Although revenue is projected to rise, no significant increase is expected in the company's net profits.

"Given the crisis, we will try to maintain profits at Rp 26 billion to Rp 28 billion this year," Roos said.

Last year, it booked Rp 26 billion in profits, representing 44 percent growth on 2007's Rp 19.4 billion.

This year, the company will also boost investment by more than 200 percent to Rp 47 billion from last year, for revitalization of machinery, and the building of new workshops.

"We will continue our program from last year to provide machinery that will help us in revitalizing our production facilities. We will also build new workshops to increase our production capacity," he said.

Investment finance is being mobilized from internal company reserves rather than bank loans and additional finance will be provided by the state financing and investment firm, PT Permodalan Nasional Madani, Roos said.

Currently, Inka is revitalizing four abandoned railway tracks in Jakarta (the Tanjung Priok-Kota track), West Java (the Bogor-Sukabumi-Cianjur and the Cicaheum-Jatinangor track), and East Java (the Bondowoso-Situbondo track).

Inka is also participating in an overseas tender for an electric train development project in Malaysia. Currently there are two countries left competing for the project, Inka and PT CAF from Spain.

"The tender is worth 160 million Ringgit (around $44.2 million).

"We will also be participating in the same project tender in Bangladesh in March," Roos added.

Last February, Inka signed a contract with Bombardier Transportation consortium, a Canadian transportation manufacturer - producing from aircraft to rail transportation equipment - to provide electric trains in Indonesia. (The Jakarta Post)

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