Responding to Surge in Retail Transport, KAI Strengthens Freight Service Development
PT Kereta Api Indonesia (Persero), known as KAI, is committed to strengthening the development of freight transport services to support industrial growth and national logistics connectivity. This move is a response to the high demand for retail transport services recorded between January and April 2026.
During this period, KAI recorded a retail transport volume of 82,129 tonnes, a 4.86 per cent increase compared to the 78,323 tonnes recorded during the same period in 2025. Compared to the January–April 2024 period, which saw 66,654 tonnes, the retail transport volume at the start of 2026 grew by 23.22 per cent.
KAI Vice President of Corporate Communication, Anne Purba, stated that this growth demonstrates an increasing need among businesses for goods distribution services that are efficient, measurable, and capable of reaching various regions more 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,” she said in a press release.
This situation indicates that significant opportunities for efficiency remain within the national logistics sector. The potential for national industries to increase product competitiveness in both domestic and global markets is considered much greater if distribution costs can be reduced. “Logistics efficiency will directly impact industrial production costs. When goods distribution becomes more effective, the national supply chain will also become more competitive,” Anne explained.
Currently, a single KAI wagon has an average capacity of 50 tonnes and is being upgraded to 70 tonnes. If a full train consists of 60 wagons, the transport capacity can reach 4,200 tonnes in a single journey.
In addition to strengthening capacity, KAI is also encouraging the integration of logistics services with industrial estates, warehousing, and ports to ensure goods distribution can occur more rapidly and efficiently. Currently, Java remains the primary hub for national logistics activities, accounting for approximately 60 per cent of Indonesia’s logistics activity, with logistics costs estimated to reach IDR 2,400–2,500 trillion per year. An efficiency of 30 per cent is estimated to generate savings of up to IDR 1,000 trillion.
“With an extensive operational network and large transport capacity, railways have great potential to support national logistics distribution that is more efficient, safe, and sustainable,” Anne asserted. Moving forward, the optimisation of rail-based distribution is expected to drive economic efficiency and strengthen Indonesia’s 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.