Smoothing Goods Distribution, KAI Cooperates with BPH Migas

In order to strengthen relationships with BPH Migas as the regulator responsible for setting subsidized fuel quotas, PT Kereta Api Indonesia (Persero) organized a Focus Group Discussion (FGD). The event, held at the Pullman Hotel, Bandung, on Thursday (16/6), took the theme "Technical Study on the Optimization of Fuel Oil and Lubricant Consumption on KAI Rolling Stock." KAI itself is a train operator that uses both subsidized and non-subsidized fuel.

Direktur Utama KAI Didiek Hartantyo (kedua kiri) bersama Kepala BPH Migas Erika Retnowati (kedua kanan) melakukan site visit di Depo Lokomotif Bandung, Jumat (17/6).
DKAI President Director Didiek Hartantyo (second left) along with Head of BPH Migas Erika Retnowati (second right) conduct a site visit at the Bandung Locomotive Depot, Friday (17/6).

Head of BPH Migas, Erika Retnowati, stated that the transportation sector is a strategic sector. Subsidized fuel serves as a stimulus for development and economic welfare for all Indonesian people.
“The allocation of the subsidized fuel quota for the railway sector to enjoy subsidized fuel is certainly highly expected to be managed smartly and wisely, meaning that its usage must be on target and its volume must match its actual needs,” she said.

KAI President Director Didiek Hartantyo explained that KAI, as a train operator, needs support from BPH Migas in providing the subsidized fuel quota to deliver services to customers, for both Passenger Transport and Goods Transport services.
"This FGD is crucial in terms of knowledge sharing so that KAI can be more optimal in managing fuel and lubricants on rolling stock, especially locomotives," Didiek stated.

In 2022, KAI received a subsidized fuel quota of 174.6 million liters. Up until early June 2022, 54% of that quota had been consumed. The subsidized fuel quota is highly critical for KAI to continue serving various public interests using trains.
“With the availability of sufficient subsidized fuel for all freight trains, KAI can support competitive logistics costs and reduce externality impacts such as congestion, pollution, and damaged roads, as well as boost global competitiveness,” Didiek said.

The train possesses an advantage as a transportation mode, namely the capacity to transport passengers and goods in large quantities within a single journey, thereby reducing highway burdens and accident rates. In terms of goods transport, the largest commodity served by KAI is coal transport in the Southern Sumatra region. The role of allocating subsidized fuel to KAI will further support efficiency and regional development, particularly in Southern Sumatra.

Through this FGD, it is expected that a synergistic relationship will be realized between BPH Migas and KAI in meeting subsidized fuel needs to support KAI's business processes, reduce cost burdens, and maintain KAI's sustainability in executing government assignments which constitute national strategic projects.