Jakarta. Indonesia's state railway company, Kereta Api Indonesia (KAI), has signed a contract worth $222.4 million (Rp 3.5 trillion) with Progress Rail, a subsidiary of the American heavy machinery company Caterpillar, for the purchase of 54 locomotives.

"These locomotives are equipped with the latest technology and environmentally friendly features, capable of meeting high standards to support environmental sustainability," said Didiek Hartantyo, CEO of KAI, in Jakarta on Thursday.

The agreement was signed by KAI's Commercial Director, Hadis Surya Palapa, and Progress Rail's Area Sales Director for Asia Pacific and South East Asia, Matthew Dunwoodie. The signing ceremony was witnessed by Director General of Railways at the Transportation Ministry, Mohamad Risal Wasal, and the Commercial Attaché of the US Embassy, Melissa A. Marszalek.

According to Didiek, the incoming locomotives, known as GT38AC or CC 205 in Indonesia, are more efficient and have less carbon emissions when pulling large trains or wagons.

Specifically designed for the Southeast Asian environment, these locomotives operate efficiently using eco-friendly biodiesel (B35) fuel. Key features include a 710 eight-cylinder engine, robust and durable AC traction motors, as well as a cabin and locomotive body design that enhances the visibility of the engineer.

Didiek explained that the locomotives would be delivered gradually from April 2025 to April 2026. This acquisition aims to support the target of transporting 85 million tons of coal in South Sumatra by 2026. 

Throughout 2023, KAI transported 63,7 million tons of goods, reflecting a 10 percent increase compared to 2022. Coal emerged as the leading commodity with a significant surge, experiencing a 12 percent rise from 45.4 million tons in 2022 to 51.0 million tons in 2023.