KAI Profits Plummet Despite Revenue Growth, Driven by Whoosh?

PT Kereta Api Indonesia (Persero), known as KAI, recorded a decline in profit for the first half of 2026, even though the company’s revenue grew during the same period. According to consolidated financial statements as of 30 June 2026, KAI booked revenue of Rp 17.96 trillion, a 6.6% increase compared to Rp 16.85 trillion in the same period last year. Operating profit also grew significantly by 25.8% to Rp 4.66 trillion from the previous Rp 3.71 trillion.

However, ironically, the current year’s profit attributable to the company plummeted drastically to just Rp 314.03 billion, a 73.5% drop from Rp 1.18 trillion in the first half of 2025. An investigation reveals that the decline in KAI’s net profit did not stem from its core passenger or logistics business performance. On the operational side, KAI’s performance actually improved: gross profit rose from Rp 5.72 trillion to Rp 6.79 trillion, and operating profit saw double-digit growth.

The primary cause of the net profit slump lies in the ‘Net Loss Share of Associates and Joint Ventures’ line item. This figure surged to a loss of Rp 2.99 trillion in the first half of 2026, up from a loss of Rp 948.2 billion in the first half of 2025—an increase of more than threefold. This specific item effectively eroded almost all of KAI’s operating profit growth, causing profit before tax to drop from Rp 1.86 trillion to just Rp 842.69 billion.

Is the Jakarta-Bandung Whoosh High-Speed Railway the culprit? According to the notes to the financial statements (Note 14), the main source of the loss originates from PT Pilar Sinergi BUMN Indonesia (PSBI)—a joint venture entity in which KAI holds a 58.53% stake. PSBI is the investment vehicle for the SOE consortium that serves as the majority shareholder in PT Kereta Cepat Indonesia China (KCIC), the operator of the Whoosh high-speed train.

Financial data shows that PSBI recorded a net loss of Rp 5.13 trillion for the period, with total assets of Rp 21.53 trillion and total liabilities nearly equal at Rp 21.55 trillion. This indicates heavy financial pressure on the entity, which represents the consolidated performance of the Whoosh project. Because KAI records its investment in PSBI using the equity method with a 58.53% ownership stake, PSBI’s losses proportionally eroded KAI’s profits. KAI’s share of net losses from its investment in PSBI reached Rp 3.005 trillion in the first half of 2026, up from Rp 2.92 trillion in the same period last year.

As a result, the carrying value of KAI’s investment in PSBI has been significantly eroded, falling from Rp 4.79 trillion at the end of 2025 to just Rp 1.79 trillion as of 30 June 2026. Furthermore, KAI has been indirectly funding KCIC through a shareholder loan scheme to PSBI, with total loans disbursed by KAI to PSBI exceeding Rp 1.72 trillion as of the end of June 2026.