L&T Rail Systems Expertise to Foray into Jakarta Metro Project

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Larsen & Toubro (L&T) rail systems recently achieved a breakthrough by winning its first ever railway systems deal. Consequently, it reflects the growing capabilities and regional ambitions of the company. The securing of major infrastructure contracts in new markets is a proud achievement for any construction company.

L&T Rail Systems Expanding Opportunities in Southeast Asia

The Jakarta MRT Phase 2A contract marks just the beginning for L&T. This project promises to be an expanding involvement in ASEAN countries. Urban rail and other transportation projects are of value at over $16 billion. They foresee these numbers across key regional economies like Indonesia, Malaysia and the Philippines over the next few years. Hence, presenting a major business opportunity that L&T is eager to pursue.

L&T hopes to recreate the success formula of its maiden project in Jakarta. They are new members in the competitive Southeast Asian construction market. Thus, the company realizes that succeeding requires the right strategies. They will adopt a flexible and collaborative contracting approach. Additionally, focused on technology transfer to local partners. Forming the base of the company will be through building trust and relationships. Therefore, the company sets its sight on more complex and lucrative projects across the region.

Regional VP Mr. Rajesh Jaggi expressed confidence concerning the L&T Jakarta Metro Project. He highlighted that this strategy will soon make L&T a partner of choice for major ASEAN infrastructure undertakings

L&T Rail Systems

L&T Rail Systems Partnering with Local Players for the Jakarta Metro Project

L&T has realized the importance of collaborating with domestic companies. Local participation and technology transfer have become deciding factors.

Sojitz Corporation is one of Japan’s leading trading houses. Furthermore, it possesses a strong presence in Southeast Asia. Sojitz’s extensive experience and network likely proved vital for L&T to win the deal. Hence, securing the Jakarta contract by teaming up with Sojitz Corporation. As a new member in ASEAN, Larsen & Toubro (L&T) lacks the expertise of Chinese state-owned contractors. These contractors are contenders for megaprojects. Hence, joining hands with influential local partners seems to be the sensible strategy.

L&T has another solar power plant project in Vietnam in partnership with TTC Group. This is one of the largest domestic energy companies. L&T rail systems has taken a similar approach for Jakarta Metro Project.

Building Global Credentials

L&T Rail Systems has its sight set on establishing global credentials. Hence, being a provider of fully integrated rail infrastructure solutions. Moreover, entering new regional markets remains a priority.

The company has the Mauritius Metro Express Project and Dhaka Mass Rapid Transit in Bangladesh ongoing. Thus, they can count success on their front closer to home. Both deals involve designing, procuring and integrating various railway systems. This showcases the expertise of the company as it is done in a short time frame. Additionally, opening up possibilities overseas too.

Its work on Phase One of the high-profile Qatar Integrated Railway Project positions the company well. Thus, targets further opportunities in the Middle East for the company.


The rail and metro sector gains momentum across developing countries. L&T has carefully accumulated expertise and skills in integrated project execution. Thus, it places in a strong position to capitalize on the upcoming growth in this infrastructure segment both regionally and globally.

Despite stiff competition, L&T secures the landmark Jakarta MRT contract. This serves to validate the strategy of the company. L&T realizes that maintaining a collaborative approach to local partnerships and needs is crucial as it looks to transition from a newcomer to a trusted partner across high-potential markets.

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