KAI Strengthens Circular Economy by Managing 2,997.99 Tonnes of Waste Through Reuse and Recycling

PT Kereta Api Indonesia (Persero) is strengthening the implementation of a circular economy through the management of materials from operational activities and rolling stock that have reached the end of their useful life. Throughout 2025, a total of 2,997.99 tonnes of KAI waste was managed through reuse and recycling schemes in collaboration with third parties, an increase of 36.31 percent compared to 2,199.41 tonnes in 2024. This increase is part of KAI’s efforts to retain material value so that it can continue to be used in the production cycle. This approach also strengthens environmental management by treating waste as a resource that still has benefits if sorted, handled, and processed appropriately. The agenda is increasingly relevant amid rising global resource needs. The Global Resources Outlook 2024 published by the United Nations Environment Programme (UNEP) noted that the extraction of natural resources has tripled over the last five decades. Without stronger collective action, resource extraction is projected to increase by up to 60 percent by 2060 compared to 2020 levels. UNEP places reuse, repair, remanufacturing, and recycling as essential components to retain the value of products and materials for longer. At the national level, the circular economy has been incorporated into Indonesia’s development direction through the 2025–2045 National Long-Term Development Plan, the 2025–2029 National Medium-Term Development Plan, and the 2025–2045 National Circular Economy Roadmap and Action Plan. These policies direct efforts towards increasing resource efficiency, reducing waste generation, and strengthening national economic resilience. KAI Vice President of Corporate Communication Anne Purba stated that material management is part of the company’s life cycle perspective. Every material must be handled responsibly from its use in operational activities to its final management stage. “The implementation of a circular economy provides space for materials that still have value to be reused. Through measured management, KAI seeks to reduce residue, maintain environmental compliance, and support the availability of materials for industrial activities,” Anne said. In practice, KAI sorts waste based on its characteristics and risk level. Metal waste such as iron scraps and lathe residue is handed over to third parties for reprocessing. Hazardous and Toxic Material (B3) waste is stored in Temporary Storage Facilities before being managed by licensed and certified partners in accordance with regulations. This management process is carried out across various work units, including workshops, depots, stations, offices, and supply warehouses. Each waste-producing unit conducts regular monitoring and recording, then submits management reports to the Environmental Agency and related institutions. The life cycle approach is also applied to railway facilities that are no longer fit for use or cannot be repaired. Rolling stock that has generally been in operation for 20 to 40 years can have its status changed to Asset Tetap Diberhentikan dari Operasi (ATDO), or Fixed Assets Retired from Operations. This status change is followed by a write-off and asset sale process in accordance with internal company regulations and after obtaining approval from the Ministry of State-Owned Enterprises and the Ministry of Transportation. KAI then conducts a sales tender to legally established business entities to ensure the asset management process is orderly, transparent, and accountable. Business entities such as PT Barata Indonesia, PT Pindad, and PT Krakatau Steel utilise the iron, steel, and metal materials from these assets. After the sale process, the ATDO assets undergo cutting, weighing, and removal before the materials are redistributed or processed into new products. Anne explained that this mechanism provides strategic value for KAI because asset management does not stop when the operational life of the rolling stock ends. Materials that are still suitable for use can re-enter the industrial chain, while the write-off process follows corporate asset governance provisions. “Iron, steel, and metal materials have a useful life that can be extended through reprocessing. This step helps maintain the economic value of assets, reduces the need for primary materials, and supports the national industrial supply chain,” Anne said. KAI will continue to strengthen waste volume recording, material sorting, partner evaluation, and compliance in the ATDO asset sales process. This strengthening is directed so that every stage of waste and asset management can provide sustainable environmental, economic, and industrial benefits. “A circular economy requires consistent management from the time materials are used until the end of their useful life. KAI continues to strengthen this process so that operational activities become more efficient, orderly, and provide added value for the environment and the national economy,” Anne concluded.