Train Transportation System in Indonesia

[Indos]

KAI Transported 26.49 Million Tons of Freight During January–May 2026

Kiki Safitri

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JAKARTA – PT Kereta Api Indonesia (KAI) transported 26.49 million tons of freight between January and May 2026.

The volume consisted of:

• Coal: 21.56 million tons
• Containers: 2.43 million tons
• Fuel (BBM): 1.10 million tons
• Cement and clinker: 977,983 tons
• Plantation products: 268,728 tons
• Retail goods: 48,684 tons
• Other commodities: 101,652 tons

Anne Purba, KAI's Vice President of Corporate Communication, said the company continues to strengthen the role of freight rail in improving national logistics efficiency.

“Freight rail plays an important role in ensuring the smooth distribution of essential goods, ranging from energy and industrial raw materials to construction materials and consumer products,” Anne said in a statement on Monday (June 15, 2026).

She explained that freight trains can transport large volumes in a single journey, helping businesses reduce distribution costs and maintain competitive pricing.

“For the public, a smooth supply chain can help support more stable prices,” she added.

Logistics Costs and Economic Impact​

Anne noted that logistics costs include all expenses involved in moving goods from production facilities to consumers, including transportation, storage, loading and unloading, and other distribution activities.

When logistics costs rise, product prices tend to increase. Conversely, lower logistics costs provide businesses with greater flexibility to keep prices competitive.

According to data from Indonesia's Central Statistics Agency (BPS), the country's nominal GDP reached IDR 23,821.1 trillion in 2025.

Based on this figure:

• A 1 percentage-point reduction in logistics costs relative to GDP would create approximately IDR 238.2 trillion in annual economic efficiency gains.
• This calculation is derived by multiplying 1% by Indonesia's GDP of IDR 23,821.1 trillion.

National Logistics Cost Reduction Targets​

Indonesia's 2025–2029 National Medium-Term Development Plan (RPJMN) records logistics costs at 14.29% of GDP as the 2022 baseline.

The government aims to reduce logistics costs to:

• 13.52% of GDP in the medium term
• 12.50% of GDP in the longer term

Using 2025 GDP as the basis for simulation:

• Reducing logistics costs from 14.29% to 13.52% of GDP could generate efficiency savings of approximately IDR 183.4 trillion per year.
• Reducing them further to 12.50% of GDP could generate annual savings of around IDR 426.4 trillion.

“These figures demonstrate that logistics is not just an industry issue. When distribution costs decline, the benefits are felt more broadly. Businesses become more efficient, prices are more stable, and consumers' purchasing power can improve,” Anne said.

International Comparison​

According to studies by the World Bank:

• Logistics costs in Latin America and the Caribbean range from 16% to 26% of GDP.
• Advanced economies generally record logistics costs of around 9% of GDP.

In Asia, official Indian government studies estimated India's logistics costs at 7.97% of GDP in 2023–2024.

These figures highlight the importance of logistics efficiency as a key factor in national competitiveness.

Importance of Rail-Based Logistics​

To reduce logistics costs, Indonesia continues to prioritize:

• Freight rail development
• Cargo terminals
• Loading and unloading facilities
• Dedicated logistics corridors
• Operational technology improvements
• Better integration of first- and last-mile transportation

KAI stated that it is optimizing freight operations through:

• Improved operating patterns
• Greater reliability of rolling stock and infrastructure
• Cooperation with corporate customers and logistics partners

The goal is to make freight transportation more scheduled, reliable, efficient, and supportive of national industrial competitiveness.

“Investment in rail-based logistics is an investment in Indonesia's competitiveness. The more freight that can be transported efficiently by rail, the greater Indonesia's opportunity to reduce logistics costs, strengthen industry, and protect consumer purchasing power,” Anne emphasized.

Freight Types and Advantages of Rail Transport​

KAI freight services handle a wide range of commodities using different wagon types, including:

• Flat wagons
• Open and closed freight wagons
• Container trains

Cargo transported includes:

• Coal
• Cement
• Clinker
• Plantation products
• Chemicals
• Fuel products
• Retail and courier shipments
• Postal deliveries
• Vehicles

Hazardous and toxic materials (B3) are transported under special handling procedures to ensure safety.

Compared with road-based freight transport, rail cargo offers several advantages:

• Lower transportation costs for large volumes
• Better fuel efficiency
• More predictable delivery schedules due to the absence of traffic congestion
• Lower emissions and improved environmental performance
• Reduced heavy truck traffic on highways

The shift of freight transportation from roads to rail is therefore viewed as an important component of Indonesia's broader strategy to improve supply chain efficiency and national competitiveness.

Key Takeaway​

The most important figure in this article is not the 26.49 million tons of freight moved, but rather the estimate that every 1 percentage-point reduction in logistics costs relative to GDP could create around IDR 238 trillion in annual economic efficiency gains. This illustrates why freight rail expansion is increasingly viewed as a strategic economic policy tool, not merely a transportation project.

KAI Angkut 26,49 Juta Ton Barang Sepanjang Januari- Mei 2026

KAI terus memperkuat peran kereta api barang dalam mendukung efisiensi logistik nasional.

money.kompas.com

 

[Indos]

Sumatra to Gain Continuous Railway from Lampung to Aceh Under Long-Term Expansion Plan
​

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JAKARTA — PT Kereta Api Indonesia (KAI) has unveiled a long-term plan to develop a continuous railway network across Sumatra, ultimately connecting Bandar Lampung in the south with Banda Aceh in the north. The project forms part of Prabowo Subianto's directive to strengthen interregional connectivity across the island.

KAI President Director Bobby Rasyidin said the Trans-Sumatra railway is one of the company's long-term priorities in cooperation with the government.

"Following the President's directive, we are developing the railway network on Sumatra by connecting Banda Aceh with Bandar Lampung," Bobby said during a parliamentary hearing with Commission VI.

Currently, Sumatra's railway system consists of several disconnected operating segments rather than a fully integrated corridor. Existing lines include routes linking Bandar Lampung–Palembang, Bandar Lampung–Lubuk Linggau, as well as separate railway networks around Medan and Padang.

Northern Sumatra Becomes First Priority​

The initial phase will focus on reconnecting the railway between Banda Aceh and Besitang in North Sumatra, a section that has remained disconnected for decades.

The priority project covers approximately 478 kilometers, with the Detailed Engineering Design (DED) currently under preparation.

The reactivation project consists of:

• Banda Aceh – Sigli: approximately 80 km
• Sigli – Bireuen – Lhokseumawe – Besitang: approximately 398 km

Together, these sections will restore a continuous railway connection across northern Sumatra.

Reactivating Railways in West Sumatra​

KAI also plans to revive several inactive railway corridors in West Sumatra, including:

• Naras – Sungai Limau
• Kayu Tanam – Padang Panjang – Bukittinggi – Limbanang
• Muara Kalaban – Sawahlunto
• Padang Panjang – Batu Balik
• Batu Balik – Solok
• Solok – Muara Kalaban

The total length of railway lines scheduled for reactivation in West Sumatra is approximately 248.5 kilometers.

New Railway Corridors​

In addition to restoring inactive lines, KAI plans to construct several new railway corridors included in Indonesia's National Railway Master Plan (RIPNAS), including:

• Rantau Prapat – Dumai
• Duri – Pekanbaru
• Pekanbaru – Rengat
• Rengat – Jambi
• Kertapati – Tarahan – Bakauheni
• Lubuk Linggau – Bengkulu

These new railway projects total approximately 1,110 kilometers.

Supporting Freight Transportation​

KAI also plans to expand rail capacity for coal transportation through the Tanjung Enim Baru – Tarahan II project. The program includes both new railway construction and upgrades to existing tracks, covering approximately 313 kilometers.

Investment Requirement​

According to Bobby, constructing a new single-track railway in Sumatra is estimated to cost around Rp20 billion per kilometer.

Completing a continuous railway network connecting Banda Aceh and Bandar Lampung is expected to require total investment of approximately US$20–25 billion (around Rp350 trillion).

"The total investment required for the entire Trans-Sumatra railway network is estimated at around US$20–25 billion, or roughly Rp350 trillion, to connect the island from end to end," Bobby said.

Sumatra Bakal Punya Rel KA dari Lampung Tembus Aceh, Begini Rencananya

KAI rencanakan pengembangan jaringan kereta api di Sumatra, menghubungkan Banda Aceh hingga Bandar Lampung. Begini rencananya.

www.cnbcindonesia.com