Train Transportation System in Indonesia

Indos · Jun 19, 2026

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

Kiki Safitri

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 · Jul 11, 2026

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

Indos · Jul 16, 2026

KCIC Records Surge in Whoosh Ridership During School Holiday Period

PT Kereta Cepat Indonesia China (KCIC) recorded a significant increase in Whoosh high-speed rail ridership during Indonesia's school holiday period.

Between June 13 and July 12, 2026, the Whoosh service carried 573,780 passengers.

Average daily ridership also increased by approximately 26.5%, rising from 16,000–18,000 passengers per day to 20,000–23,000 passengers per day during the holiday season.

Woosh seen in Bekasi City, West Java

KCIC General Manager of Corporate Secretary Eva Chairunisa said the increase reflects growing public confidence in Whoosh as a fast, comfortable, and reliable mode of transportation.

According to Eva, the service's short travel time, seamless connectivity with various onward transportation options, and easy access to popular tourist destinations in Jakarta and Bandung were the main factors driving higher passenger demand during the school holiday period.

Indos · Thursday at 12:34 PM

Foreign Tourists Increasingly Choose Regional Train Stations Across Indonesia, KAI Says

Rabu, 22 Juli 2026

JAKARTA – Foreign tourists are increasingly beginning their rail journeys from regional stations across Java and Sumatra, rather than concentrating on Indonesia's largest cities, according to PT Kereta Api Indonesia (Persero) (KAI).

The state-owned railway operator said the emerging travel pattern could create new opportunities for local economic growth beyond the country's traditional tourism hubs.

During the January–June 2026 period, KAI served 308,874 foreign passengers on its long-distance train services.

Of that total, 106,474 passengers, or 34.47%, departed from 222 regional stations outside the company's ten busiest stations.

The number of foreign passengers departing from regional stations increased 4.87% year-on-year, accounting for nearly two-thirds of KAI's total growth in international passengers over the past year.

Lowest class ticket of Indonesia train

Anne Purba, Vice President of Corporate Communication at KAI, said the shift reflects a growing tendency among international visitors to begin their journeys from a wider range of cities rather than relying solely on Indonesia's traditional tourism gateways.

"Foreign tourists are increasingly using a broader range of stations as starting points for their journeys. This trend creates opportunities for regional cities to showcase their cultural heritage, culinary attractions, history, natural landscapes, and local communities," Anne said.

For Indonesia's transportation and tourism sectors, the trend suggests that the economic benefits of tourism are becoming more widely distributed across the country.

Higher passenger volumes at regional stations are expected to stimulate demand for local transportation, accommodation, restaurants, tourist attractions, and products offered by small and medium-sized enterprises (SMEs).

The trend also coincides with the continued recovery of Indonesia's tourism industry.

According to Statistics Indonesia (BPS), the country recorded 1.38 million international visitor arrivals in May 2026, an increase of 5.83% year-on-year.

Meanwhile, UN Tourism projects global international travel will grow by approximately 3% to 4% during 2026.

Within KAI's network, foreign passenger numbers increased across 11 of the company's 13 operating regions.

The strongest growth was recorded in:

Regional Division IV Tanjungkarang: +12.76%
Operational Area (Daop) 4 Semarang: +12.38%
Daop 5 Purwokerto: +11.46%
Daop 8 Surabaya: +11.42%

At the station level, Purwokerto Station recorded one of the strongest performances, serving 5,780 foreign passengers, up 20.54% from the first half of 2025.

Other stations also posted strong growth:

Tegal Station: 2,980 passengers, up 23.55%
Kiaracondong Station: 2,018 passengers, up 18.08%

Several smaller stations recorded even faster growth rates.

Garut Station served 587 foreign passengers, an increase of 41.79%, while Purwakarta Station handled 617 passengers, up 56.20%.

Meanwhile, Bogor Paledang Station nearly tripled its foreign passenger volume to 1,262 passengers, compared with 420 during the same period last year.

Anne said the trend should encourage local governments to strengthen tourism ecosystems around railway stations by improving transport connectivity, tourist information services, and visitor-friendly public facilities.

"Railway stations can serve as gateways to local experiences. Better connectivity will help tourists reach destinations more easily while connecting them with local products and services offered by surrounding communities," she said.

KAI: Wisman Mulai Tinggalkan Hub Utama, Padati Stasiun Regional di Jawa hingga Sumatra | Transportasi

JAKARTA, kabarbisnis.com: Perjalanan wisatawan mancanegara (wisman) dengan kereta api tidak lagi terpusat di kota-kota besar. PT Kereta Api Indonesia (Persero) mencatat tren baru, yakni semakin banyak...

www.kabarbisnis.com

Indos · 2026-07-29T16:27:25+0100

UK Offers £4 Billion Financing as Indonesia Prioritizes Surabaya Rail Project

Ria Fortuna Wijaya
July 29, 2026 | 6:39 pm

UK Trade Commissioner for Asia Pacific Martin Kent speaks to reporters on the sidelines of the UK-Indonesia Rail Partnership Forum 2026 in Jakarta on Wednesday, July 29, 2026. (JG Photo/Ria Fortuna Wijaya)

Jakarta. The UK is seeking a bigger role as a financing and technology partner in Indonesia's railway expansion, offering up to £4 billion ($5.3 billion) in export financing as Indonesia highlighted the planned Surabaya metropolitan urban railway as one of its priority rail projects at the UK-Indonesia Rail Partnership Forum 2026 on Wednesday.

The financing capacity, offered through UK Export Finance (UKEF), comes as Indonesia accelerates railway development beyond Jakarta and looks to attract new funding for future urban transport projects.

UK Trade Commissioner for Asia Pacific Martin Kent said the financing, provided through UK Export Finance (UKEF), is intended to complement British expertise in supporting Indonesia's long-term infrastructure development.

Kent said the financing, provided through UK Export Finance (UKEF), is intended to complement British expertise in supporting Indonesia's long-term infrastructure development.

"UKEF now has up to £4 billion of financing capacity available for Indonesia, and it stands ready to deploy that £4 billion to provide competitive UK financing solutions to support Indonesia's future ambitions alongside British expertise," Kent said at the forum in Jakarta.

Kent said the UK's ambition extends beyond participating in individual projects, emphasizing long-term collaboration with the Indonesian government, industry, and development partners.

"The UK ambition here is not simply to participate in individual projects, but it's to build long-term partnerships with Indonesia," he said.

Indonesia, meanwhile, identified the Surabaya metropolitan urban railway as one of its key priorities for future rail development.

Transportation Ministry Director General of Railways Allan Tandiono said the project, which includes a proposed MRT or LRT system, is one of the country's strategic initiatives to improve urban mobility and regional productivity.

Surabaya, East Java

"Among these priorities, the development of the Surabaya metropolitan area urban railway system, including the Surabaya Regional Railway Line and the proposed MRT or LRT system, represents one of Indonesia's strategic initiatives to improve urban mobility and regional productivity," Allan said.

Allan said Indonesia has made significant progress in modernizing its railway network over the past decade through the development of MRT, LRT and high-speed rail systems. However, he acknowledged that financing remains one of the government's biggest challenges.

"In the future, we hope that the United Kingdom can come forward, not only doing business with us, but also providing generous financing to us, so that we can expedite the railway development even faster," he said.

Indonesia currently operates nearly 6,927 kilometers of railway lines -- the longest network in Southeast Asia -- with most of the tracks located on Java. The government has also identified more than 2,200 kilometers of inactive railway corridors that could be reactivated and expanded in the future.

Allan said local governments frequently request new railway projects, but securing funding remains a recurring obstacle.

"Our office almost every week receives requests from local governments telling us that they want to build railway lines for their communities. ... The main question that we ask each other is, where can we get the money from?" he said.

While the government remains open to public-private partnerships, Allan said freight rail projects could offer the most realistic entry point for private investment because passenger rail typically requires substantial government support.

Deputy Infrastructure Minister at the National Development Planning Ministry (Bappenas) Abdul Malik Sadat Idris said railway development has become a higher priority under President Prabowo Subianto, with several long-planned projects expected to move forward soon.

"The president himself is a strong supporter of railway development," Abdul Malik said, adding that preparations for new projects are expected to be completed before Aug. 17.

UK Offers £4 Billion Financing as Indonesia Prioritizes Surabaya Rail Project

The UK offered up to £4 billion in export financing as Indonesia prioritized Surabaya's urban rail project to accelerate expansion.

jakartaglobe.id

Train Transportation System in Indonesia

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Indos

INT'L MOD

Logistics Costs and Economic Impact

National Logistics Cost Reduction Targets

International Comparison

Importance of Rail-Based Logistics