VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Minister for State Enterprises Rini Soemarno said state-owned PT Industri Kereta Api (INKA) will start construction of a rolling stock factory in the regency of Banyuangi, East Java, by the end of this year.

"INKA has received growing orders both for domestic use or for exports. Therefore we are speeding up preparation for the construction of a new factory in Banyuwangi," the minister said in Banyuwangi on Friday.

PT Inka is a state-owned railway manufacturing company based in Madium, East Java, producing passenger trains and freight cars. Rini said, currently, preparation is in progress in a location where the factory is to be built in the land belonging to state-owned plantation company PT Perkebunan Nusantara XII in the district of Banyuwangi.

"Hopefully groundbreaking will take place before the end of 2018," Rini was quoted as saying in a written statement issued by the Banyuangi district administration.

Rini said Banyuwangi was chosen as the place for the new factory for the strategic location of the coastal district, which is growing rapidly over the past several years.

"This place is close to railroad, port, and we are building toll road. We will make the district brisker with economic activities," she said.

Rini was full of praise for Banyuwangi saying the city is a convenient place with easy accessibility. Banyuangi Regent Abdullah Azwar Anas thanked the minister saying the BUMN ministry would contribute to bolstering the district economic development with its plan to build the rolling stock factory. (antara)