PEFINDO has assigned its idA- rating with negative outlook for PT Industri Kereta Api (Persero) (INKA)

(July 01, 2026)--The negative outlook reflects the heightened risk associated with prolonged delivery delays in the Kereta Commuter Indonesia (KCI) project, which could further weaken the Company's already weak financial profile should the delay persist. The corporate rating reflects INKA’s strategic role for its shareholder, its leading market position in domestic rolling stock manufacturing, and strong financial flexibility. However, the rating is constrained by its weak financial profile, risk associated with project execution, as well as high dependency on a single customer.

INKA’s rating may be lowered if delays in the KCI and other ongoing projects persist, resulting in further weakening of profitability, cash flow generation, and leverage metrics due to heightened interest burden, cost overruns, and additional debt-funded working capital needs. We may also lower the rating if there is evidence of weaker shareholder support, such as through a material reduction in government ownership.

The outlook may be revised to stable without rating changes if INKA successfully resolves the KCIN delivery issues and demonstrates its ability to execute and deliver projects on a sustained and timely basis, without recurring material delivery disruptions, while maintaining a financial profile consistent with the current rating category.

INKA is mainly engaged in producing rolling stock products and is the only player in Southeast Asia in this industry. Its products include passenger wagons, freight cars, several units of electric multiple unit (EMU), diesel multiple unit (DMU), locomotives, bogies, engineering, procurement, and construction (EPC) projects, as well as rail-related services. The Indonesian government is INKA’s ultimate shareholder with one series A Dwiwarna share and through PT Danantara Asset Management (Persero). (ends)