More Efficient Logistics: Rail Transport Strengthens National Economic Competitiveness
Logistics movement directly impacts price stability and the smooth operation of economic activities. The increasing need for distribution is driving the use of transport modes with large capacities and scheduled timetables to ensure inter-regional logistics flows remain maintained.
In the first quarter of 2026, PT Kereta Api Indonesia (Persero) handled freight transport amounting to 14,948,442 tonnes. This volume demonstrates ongoing national-scale distribution movement, while also illustrating the role of railways in connecting production areas with consumption centres.
Over a long period, the growth trend has also been consistently visible. In the last decade, KAI’s freight transport increased by 74.2%, from 40,060,714 tonnes in 2017 to 69,791,691 tonnes in 2025. This increase indicates the growing need for rail-based distribution alongside national economic activities.
From a capacity perspective, the efficiency of rail-based transport is evident in its large-scale carriage. For example, a single coal transport train in southern Sumatra can carry up to 3,000 tonnes in one trip. Compared to road transport, this volume is equivalent to about 120 trucks. This comparison shows opportunities for reducing traffic density while easing the burden on road infrastructure.
Carriage capacity is also supported by wagon capabilities reaching around 50 tonnes and continuously developed up to 70 tonnes per wagon. In a single train consisting of dozens of wagons, the carriage capacity can reach 4,200 tonnes in one trip. This scale enables large-volume distribution to be carried out more efficiently.
KAI Vice President of Corporate Communication, Anne Purba, stated that the increase in freight transport volume demonstrates the need to strengthen rail-based logistics systems.
“The consistent growth in freight transport shows a need for large-scale distribution with time certainty. This becomes an important foundation for encouraging broader and more integrated railway infrastructure development,” said Anne.
This situation is relevant to the structure of national logistics costs. Currently, Indonesia’s logistics costs are in the range of 15% to over 20% of Gross Domestic Product (GDP), while the global standard is around 7–8%. This gap indicates room for efficiency that can be achieved through strengthening rail-based transportation systems.
Around 60% of national logistics activities are on Java Island, with logistics costs estimated to reach Rp2,400–2,500 trillion per year. Strengthening railway infrastructure in high-movement areas is one step that can drive large-scale distribution efficiency.
Operational performance further strengthens that distribution system. In the first quarter of 2026, the on-time performance for freight transport was recorded at 95.97% for departures and 91.77% for arrivals. This data shows that rail-based distribution has a measured and reliable operational pattern.
Anne added that strengthening railway infrastructure will have a direct impact on goods distribution in various regions.
“Network development and increased rail-based transport capacity will open up opportunities for more equitable distribution. This will support smooth supply and contribute to price stability in society,” Anne continued.
With a continuously increasing growth trend and large carriage capacity, strengthening railway infrastructure becomes a strategic step in building a more efficient national logistics system.
“This direction is expected to strengthen distribution connectivity, reduce logistics costs, and support Indonesia’s economic competitiveness,” Anne concluded.