Deputy Minister of Industry Faisol Riza is encouraging the domestic railway industry to seize global market opportunities. A 2030 projection shows the market for railway infrastructure could reach USD 96.5 billion (IDR 1.57 quadrillion). According to Grand View Research, the global railway industry is expected to grow at a rate of 6.3% annually. It is vital to deepen the structure of the domestic industry to strengthen the competitiveness of the national railway sector, including the metal-based industry. The demand for railways in Indonesia is increasing in line with the country's economic growth and the development of new lines connecting key economic centres. Over the next five years, it is estimated that passenger mobility will grow by 10.6% annually, and freight transport by 12.3% annually. PT INKA is leading Indonesia's domestic railway industry in producing international-standard and environmentally friendly trains, including new-generation passenger trains, electric trains, light rail transit, and autonomous battery trams, as well as hybrid propulsion systems, some of which contain 40-60% domestic content.
The development of strategic components, e.g. composite brake blocks, railway wheels and wheelsets, is also crucial, with an annual demand of 200,000 composite brake blocks and 30,000 railway wheelsets. Key challenges include meeting technical specifications and the limitations of testing facilities that meet international standards for brake blocks, production, and railway wheel industry investments. Potential for domestic development of other components includes propulsion and electrical systems, raw materials and metal-based components, and supporting infrastructure components for the railway sector. The Ministry of Industry has already conducted a discussion to address industry needs. Vice President of Rolling Stock for PT Kereta Api Indonesia, Soegito, said PT KAI is committed to using more domestic components, having developed various strategies to increase the use of domestic products and reduce its reliance on imported components.
