KAI's Plantation Freight Volume Rises 18% Amid B50 Biodiesel Rollout

PT Kereta Api Indonesia (Persero) transported 374,098 tonnes of plantation freight between 1 January and 31 July 2026, an 18.00 per cent increase compared to 317,026 tonnes in the same period of 2025. Vice President Corporate Communication of KAI, Anne Purba, stated that the majority of the plantation commodities carried were crude palm oil (CPO). The rail-based service helps maintain the smooth distribution of these commodities to large-capacity processing facilities with scheduled journeys and controlled operational oversight. Monthly performance also reflected growth, with July 2026 volume reaching 51,741 tonnes, up 24.52 per cent from 41,551 tonnes in July 2025, representing an additional 10,190 tonnes in a single month. Purba noted that the 18 per cent increase signals stronger demand for rail-based plantation logistics, with KAI ensuring the smooth distribution of CPO as a raw material for various industries, including bioenergy, which now plays a strategic role in national energy security policy. The link between the plantation and energy sectors has tightened following the government’s launch of the Mandatory B50 Biodiesel Programme on 1 July 2026, inaugurated by President Prabowo Subianto on 9 July 2026 as part of a strategy to strengthen national energy independence and security. The Ministry of Energy and Mineral Resources estimates that nationwide B50 implementation will require approximately 16.7 to 18 million kilolitres of biodiesel, consuming around 15.2 to 16.3 million tonnes of CPO. The programme is projected to expand the domestic market for palm oil, support foreign exchange savings of up to IDR 170 trillion, absorb approximately 2.1 million workers, and reduce carbon dioxide emissions by up to 44.46 million tonnes. Purba explained that the increased demand for CPO for biodiesel broadens the domestic market for the plantation sector, and within this supply chain, the railway plays a role in maintaining the safe, efficient, and sustainable distribution of raw materials from production regions to processing industries. The development of B50 in Indonesia has also drawn international market attention. A July 2026 report from the United States Department of Agriculture, titled Oilseeds: World Markets and Trade, forecast global palm oil production for the 2026/2027 marketing year at 81.44 million tonnes, with Indonesia projected to produce 47.5 million tonnes, or approximately 58.3 per cent of the global total. The report noted that the global palm oil market is factoring in the influence of Indonesia’s B50 policy, potential El Niño weather patterns, and crude oil price developments, indicating that Indonesia’s domestic energy policy is influencing global vegetable oil demand and market dynamics. In line with government policy, KAI began the phased implementation of B50 in its diesel-powered rolling stock on 1 July 2026, covering locomotives and generator cars after testing engine performance, fuel consumption, combustion stability, emissions, and the condition of filters, lubricants, and fuel systems. Purba concluded that KAI plays a role in two critical parts of the B50 ecosystem: through its plantation freight services, it helps ensure the smooth distribution of palm oil commodities, and in its operational activities, it is progressively adopting B50 in locomotives and generator cars while prioritising safety and asset reliability. KAI will continue to strengthen its plantation freight service capacity, asset readiness, loading and unloading facilities, and coordination with customers and stakeholders to support the palm oil downstream industry, increase domestic energy utilisation, and maintain the competitiveness of Indonesian plantation commodities.