Indonesia to buy 50 locomotives from China

The Indonesian government is planning to buy 50 brand new locomotives from China as part of rejuvenation program in state-run railway company PT Kereta Api (PTKA), local media said Tuesday in Jakarta.

"The planned purchase is very urgent because there are many damaged locomotives here," Minister of Transportation Hatta Radjasa was quoted by Bisnis Indonesia newspaper as saying.

The purchase, estimated to cost between 55 million and 60 million US dollars, is also intended to replace old locomotives which have attained the age of over 15 years, the minister said.

He added the purchase would not be financed by the state budget as the government is expecting soft loans from China and European countries.

The Transportation Ministry has earlier predicted that the railway company will be short of locomotives during the peak traffic season during and after the Muslim fasting month in November because many locomotives are still under repair.

Source: Xinhua