KAI Container Transport Grows 19.35 Percent, Supporting Logistics Efficiency and National Economic Connectivity

A country’s economic activity can be observed, among other things, by how smoothly goods move from production centres to industrial estates, ports, distribution hubs, and into the hands of consumers. In the first five months of 2026, state-owned PT Kereta Api Indonesia (Persero) recorded positive growth in its container transport service, which serves as a backbone for national goods distribution. From January to May 2026, KAI handled 2,428,471 tonnes of containers, an increase of 393,720 tonnes, or 19.35 percent, compared to the 2,034,751 tonnes recorded in the same period of 2025. This growth signals the increasing use of rail-based transport to support supply chains and economic activity across various regions of Indonesia. KAI Vice President of Corporate Communication, Anne Purba, stated that the rise in container volume reflects the high demand for goods distribution, which follows developments in industry, trade, and public consumption. “The growth in container transport shows increased goods distribution activity across various sectors. The railway is here to ensure that the logistics flow takes place on schedule, is efficient, and is capable of supporting the needs of businesses and the public,” said Anne. This growth becomes even more pertinent when linked to national logistics challenges. Based on a study by the Ministry of National Development Planning/Bappenas, Indonesia’s logistics costs still hover around 14.29 percent of Gross Domestic Product (GDP). The government is targeting a reduction to 8 percent of GDP by 2045. Efficiency in goods distribution is a crucial factor for boosting national economic competitiveness and strengthening Indonesia’s position in the global supply chain. On the other hand, Indonesia’s economy was recorded to have grown by 5.12 percent in 2025. Compared to that figure, KAI’s container volume growth of 19.35 percent shows a rate nearly four times higher. This situation indicates increased production, trade, and distribution activity, as well as logistics needs utilising rail-based transport. In a global context, the role of containers holds a highly strategic position. World Bank data shows that more than 80 percent of world trade is transported by sea, while approximately 35 percent of global trade volume and over 60 percent of global trade value is transported using containers. These figures show that smooth container movement is a crucial indicator in supporting economic growth and international trade. For Indonesia, the increase in container volume via railway has a broader impact than just the transfer of goods. Each passing container carries raw materials for industry, manufactured products to markets, export commodities to ports, and various public necessities that must be available on time. This smooth distribution contributes to logistics cost efficiency, maintains the supply of goods, and supports economic productivity in various regions. Beyond supporting distribution efficiency, rail-based container transport also helps increase the capacity of the national transportation system. With the ability to transport goods in large volumes on a single journey, trains support more effective distribution while strengthening connectivity between industrial estates, logistics centres, and ports. “Strong logistics will strengthen the economy. Because of that, KAI continues to develop its container services to support the connectivity of industrial estates, distribution centres, and ports, which are crucial nodes for national economic growth,” concluded Anne.