KCI Chooses to Import from China Despite Japan Offering a Cheaper Price

KONTAN.CO.ID - JAKARTA. PT KAI Commuter (KCI) has revealed the reason for choosing to import three new electric trains (KRL) from China rather than from Japan, even though the price offered by Japan is cheaper.

For your information, in the signing of the Cooperation Contract for the Procurement of New KRL Facilities on January 31, 2024 in Beijing, China, it was agreed to import three new KRLs from China worth IDR 783 billion.

Meanwhile, in the Price Proposal of JR East dated June 30, 2023, which was once shared by the Director of Strategic Planning and Business Development of PT KAI John Robertho during a Hearing with the V Commission of the Indonesian Parliament at the Parliament Complex, Tuesday (19/9/2023), the price of three new KRLs from a Japanese manufacturer is only IDR 676.8 billion (assuming an exchange rate of IDR 104.44 per yen).

Corporate Secretary of KAI Commuter Anne Purba said, during the procurement process of these three imported KRLs, they have explored various providers or manufacturers from several KRL producing countries. KCI received an official proposal from the Japanese KRL manufacturer, J-TREC, in October 2023.

In addition to J-TREC, KCI also explored with South Korean train manufacturing companies Wojin and Dawonsys, as well as a Chinese company that also produces the Whoosh High-Speed Train, namely China Railway Construction Corporation (CRRC) Sifang Qingdao.

After receiving proposals from various companies, KCI then discussed the procurement process of KRL facilities and finally decided to choose CRRC Sifang as a work partner.

"CCRC Sifang can meet the technical specifications and time delivery that are in accordance with the requirements and prices that are competitive compared to other products," she said in a written statement, Friday (2/2).

KCI also considered from the reputation and track record side because CRRC Sifang has collaborated with 28 countries in the world to provide commuter EMU facilities with various conditions in each importing country. In addition, in this collaboration, KCI and CRRC Sifang also agreed to transfer knowledge for future KRL operational handling.

"This also strengthens KAI Commuter to collaborate with CRRC Sifang," she said.

For your information, the procurement of these new KRL facilities is a step by KCI in fulfilling KRL facilities to accommodate KRL users in Greater Jakarta, which is expected to reach 2 million users per day by 2025.

As a note, currently the average volume of KRL users in Greater Jakarta on weekdays is 870,000-950,000 people per day. In January 2024, the highest volume was recorded on Monday (2/1/2024), which was as many as 941,771 people, with an average volume of 877,846 people every weekday.

This article has been published on Kompas.com with the title Reason KCI Chooses to Import KRL from China Even Though Japan Offers Cheaper Price.