The deal was signed in Bussnang, Switzerland, by Mr Peter Spuhler, chairman of Stadler, Mr Ansgar Brockmeyer, sales director with Stadler, and Mr Budi Noviantoro, president director of PT Inka, in the presence of the Indonesia’s minister of state-owned enterprises, Ms Rini Soemarno.

The deal follows a declaration of intent by the two companies earlier this year. PT Inka started construction of the new factory in Banyuwangi in March, however, Stadler will not start to transfer technology to PT Inka or train Indonesian staff until the joint venture wins a contract to supply at least 500 suburban rail vehicles with an option for a further 500 cars.

“Following several failed attempts to successfully enter the Asian market from Europe, we realised that this was not possible without a production site on the spot,” Spuhler says. “We therefore decided to look for a suitable local partner and have finally managed to find one after more than 10 years of searching. This has enabled us to make the leap to Asia.”