Jakarta, INTI - Indonesia is emerging as a strategic manufacturing hub for the Asian rail industry as Swiss train manufacturer Stadler Rail Management AG expands its investment in the country by strengthening local production capabilities and developing a skilled workforce. The move is driven by Indonesia's large population and the government's continued commitment to expanding railway infrastructure.
"Indonesia's large population, combined with the government's railway infrastructure development agenda, encouraged us to engage in more in-depth discussions," said Stefan Rutishauser, Area Marketing & Sales Director for New Markets at Stadler Rail Management AG, on Wednesday, June 24, 2026.
Indonesia Becomes Stadler’s Strategic Manufacturing Hub
Since 2019, Stadler has partnered with PT Industri Kereta Api (INKA) through a joint venture, PT Stadler INKA Indonesia, and established a manufacturing facility in Banyuwangi. To support the industry's demand for highly skilled talent, the company also launched a vocational education program at Banyuwangi State Polytechnic (Poliwangi), where the curriculum consists of 60 percent practical training and 40 percent classroom instruction.
The workforce development model, which has previously been implemented by Stadler in Kazakhstan, Poland, and the United States, is designed to meet the latest technological demands. The company considers workforce competency a key factor in successfully expanding into new markets.
"That is not a sustainable business model," Stefan said, emphasizing the importance of developing local talent rather than relying solely on external expertise.
Local Manufacturing Supports Regional Growth
Stefan also highlighted that Stadler chose to establish manufacturing operations directly in Indonesia instead of exporting finished rail products from Europe. The strategy has supported the company's business performance, with Stadler reporting a 13 percent year-on-year increase in revenue and a doubling of net profit to CHF 100.7 million (approximately Rp2.23 trillion) in 2025.
"The new production site in Indonesia strengthens Stadler's entry into the Asian market and creates the best conditions for achieving growth across the region," said Peter Spuhler, Chairman of the Board of Directors of Stadler, in a company press release issued on September 20, 2019.
Spuhler also reaffirmed that PT INKA is the right strategic partner for the joint venture, underscoring the long-term collaboration between the Swiss rail manufacturer and Indonesia's state-owned rolling stock producer.
Conclusion
Stadler Rail's continued investment reflects growing confidence in Indonesia as a strategic rail manufacturing and talent development hub for Asia. By combining local production, vocational education, and long-term collaboration with PT INKA, the company aims to strengthen its regional presence while supporting Indonesia's industrial transformation and railway infrastructure ambitions.
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