Indonesian Political, Business & Finance News

KAI Transports 13,920 Tonnes of Fertiliser up to July 2026, Strengthening Agricultural Supply Chain

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
KAI Transports 13,920 Tonnes of Fertiliser up to July 2026, Strengthening Agricultural Supply Chain
Image: ANTARA_ID

State railway operator PT Kereta Api Indonesia (Persero) is reinforcing its role in the national agricultural supply chain by transporting fertiliser via rail, a function that has gained significance amid public attention on rice price fluctuations and the need to maintain food availability for Indonesian families. Statistics Indonesia (BPS) recorded that rice was one of the dominant commodities contributing to inflation in July 2026, indicating that controlling food prices requires coordinated efforts, from ensuring the availability of production inputs for farmers and smooth distribution to increasing output, strengthening reserves, and channelling food to the public.

Throughout January to July 2026, KAI transported 13,920 tonnes of fertiliser, a 2.43% increase compared to 13,590 tonnes in the same period of 2025. A sharper rise was seen in monthly figures, with July 2026 volumes reaching 1,800 tonnes, a fivefold increase from 360 tonnes in July 2025, representing a 400% surge year-on-year.

KAI Vice President of Corporate Communication Anne Purba stated that fertiliser distribution is a crucial link in the food production process. She noted that ensuring fertiliser is available according to needs and planting schedules helps farmers maintain land productivity and plan their planting seasons more effectively. “Public concern over rice prices must be addressed through measured work from upstream to downstream. KAI plays a role in logistics by maintaining fertiliser transport services so that the agricultural input distribution chain runs smoothly, safely, and with schedule certainty,” she said.

The government has allocated 9.55 million tonnes of subsidised fertiliser for 2026, with 54.28% distributed as of 25 June. It also reduced the maximum retail price of subsidised fertiliser by around 20% from late 2025 to lower farmers’ production costs and preserve the agricultural sector’s competitiveness. Anne added that government fertiliser policies need to be supported by reliable transport and logistics networks, noting that railways offer large capacity, planned schedules, and consistent mass delivery.

She stressed that synergy among the government, state-owned enterprises, fertiliser producers, logistics operators, regional administrations, and farmer groups is essential to ensure fertiliser availability meets demand. KAI is ready to fulfil its logistics role by managing journeys that prioritise safety and reliability. On the downstream side, the government is also accelerating the distribution of rice through the Food Supply and Price Stabilisation programme and rice aid to the public, complementing policies to strengthen agricultural production and input distribution to maintain supply and purchasing power.

Anne concluded that fertiliser transport is part of a larger food security ecosystem, where rice availability and price stability are influenced by factors such as seasons, productivity, production costs, distribution, market conditions, and reserves. She affirmed that KAI understands rice is on millions of families’ tables daily, and behind that are farmers preparing the land, workers maintaining production, and many parties ensuring distribution runs smoothly, with every fertiliser journey carrying the responsibility to support the sustainability of Indonesian food production.

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