Indonesian Political, Business & Finance News

KAI Retail Transport Grows Consistently, Supporting National Logistics Efficiency

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
KAI Retail Transport Grows Consistently, Supporting National Logistics Efficiency
Image: MEDIA_INDONESIA

PT Kereta Api Indonesia (Persero) has recorded positive growth in its retail transport services throughout the period of January–April 2026. During this period, KAI’s retail transport volume reached 82,129 tonnes, a 4.86% increase compared to the same period in 2025, which stood at 78,323 tonnes. When compared to the January–April 2024 figure of 66,654 tonnes, the retail transport volume grew by 23.22%.

Specifically in April 2026, KAI handled 21,844 tonnes of retail transport, an increase of 22.87% compared to April 2025’s 17,778 tonnes. Anne Purba, Vice President of Corporate Communication at KAI, stated that this growth demonstrates the increasing demand from businesses for distribution services that are efficient, measurable, and capable of reaching various regions optimally.

“Railways are increasingly being chosen as a mode of goods distribution because they offer large capacity, more predictable travel times, and support logistics cost efficiency within the national supply chain,” said Anne, as quoted from a written statement received on Monday (18/5).

According to Anne, strengthening rail-based logistics is crucial given that Indonesia’s current logistics costs remain between 15% and over 20% of Gross Domestic Product (GDP), whereas the global standard is around 7–8%. This condition indicates significant room for efficiency within the national logistics sector. The more efficient distribution costs become, the greater the opportunity for national industries to increase product competitiveness in both domestic and global markets.

“Logistics efficiency will directly impact industrial production costs. When goods distribution becomes more effective, the national supply chain will also become more competitive,” Anne continued.

KAI is also continuing to strengthen its freight capacity by improving rolling stock capabilities and developing rail-based distribution patterns. Currently, KAI operates wagons with an average capacity of 50 tonnes per wagon, which is being increased to 70 tonnes. With a single train consisting of up to 60 wagons, the transport capacity can reach 4,200 tonnes in a single trip.

In addition to capacity reinforcement, KAI continues to encourage the integration of logistics services with industrial estates, warehousing, and ports to ensure goods distribution is faster and more efficient.

Meanwhile, Java remains the primary hub for national logistics activities. Approximately 60% of Indonesia’s logistics activity is located on Java, with logistics costs estimated to reach IDR 2,400–2,500 trillion per year. An efficiency of just 30% is estimated to generate savings of up to approximately IDR 1,000 trillion.

Anne believes that rail-based freight transport has a massive opportunity to bolster this efficiency, as it can transport large volumes of goods more stably and with minimal road traffic interference. “With an extensive operational network and large transport capacity, railways have great potential to support a more efficient, safe, and sustainable national logistics distribution,” she explained.

KAI will continue to strengthen the development of freight services to support industrial growth and national logistics connectivity. The optimisation of rail-based distribution is expected to drive economic efficiency and strengthen Indonesia’s future competitiveness. “The larger the share of goods distribution that shifts to railways, the greater the opportunity for efficiency that can be felt by the business community and the wider public,” Anne concluded.

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