Railway Retail Freight Transportation Grows Rapidly, Reaches 123,810 Tons in the First Semester of 2026!
The retail freight transport volume of PT Kereta Api Indonesia (Persero) throughout the first semester of 2026 reached 123,810 tons. This achievement increased by 5.06% compared to the first semester of 2025 at 117,851 tons, and grew by 21.84% compared to the first semester of 2024 at 101,617 tons.
This growth indicates that the demand for retail goods distribution via railways continues to strengthen. The average volume of KAI retail freight from January–June 2026 reached around 20,635 tons per month, higher than the average in the first semester of 2025 at around 19,642 tons per month and the first semester of 2024 at around 16,936 tons per month.
Vice President Corporate Communication KAI, Anne Purba, explained that retail freight is one of the important growth areas in the national logistics ecosystem. According to her, this service can help business actors obtain more scheduled, high-capacity, and connected intercity distribution options with partner logistics networks. The growth of KAI’s retail freight is a signal that railways can take a larger role in the national logistics system, including supporting businesses and MSMEs.
KAI’s retail freight service is carried out with a Business to Business (B2B) model through strategic partnerships with logistics partners. Through this scheme, businesses, MSMEs, and the public can utilize rail-based delivery services through partner networks, service points, and onward distribution services available in the market.
In the logistics chain, railways play a role in the middle-mile or main intercity journey. Goods are consolidated by partners, transported by train along main routes, and then forwarded through onward distribution services to the destination points. This pattern allows railways to become the backbone of medium- and long-distance distribution, while road transport continues to play an important role as the first- and last-mile connector. Anne added that railways have advantages in capacity, schedule regularity, and efficiency for intercity travel, so when this role is combined with partner first-mile and last-mile networks, businesses can obtain a more competitive distribution chain.
Strengthening rail-based retail freight is becoming increasingly important considering that Indonesia’s logistics costs remain a major challenge for national competitiveness. The Coordinating Ministry for Economic Affairs recorded that Indonesia’s logistics costs are in the range of 14.29% of GDP. High logistics costs can impact goods prices, export competitiveness, investment, interregional price disparities, and supply stability.
As a global comparison, the World Bank states that the average logistics cost is around 13% of GDP, while the most efficient countries are around 8% of GDP. This comparison shows that Indonesia still has significant room to improve the efficiency of its national supply chain, including through increasing the share of rail-based logistics.
With Indonesia’s 2025 GDP at current prices reaching IDR 23,821.1 trillion according to BPS, national logistics costs at a ratio of 14.29% are equivalent to around IDR 3,404 trillion per year. As a macro simulation, if 30% efficiency can be achieved broadly in the national logistics system, the theoretical potential savings could reach around IDR 1,021 trillion per year. This figure illustrates the magnitude of the economic impact of strengthening a more efficient logistics system.
The government also continues to encourage the development of railway networks as part of efforts to reduce logistics costs and strengthen economic connectivity between regions. The Coordinating Ministry for Infrastructure and Regional Development in 2026 emphasized that the development of an integrated railway network can significantly reduce logistics costs and increase interregional economic competitiveness.
Anne stated that the growth of KAI’s retail freight can be a momentum to strengthen rail-based national logistics policies. According to her, railways have great potential to become the backbone of intercity distribution, especially on routes with stable freight volumes, medium to long distances, and scheduled delivery needs. Strengthening rail-based retail freight needs to be seen as part of the broader agenda of national logistics efficiency. When retail goods can be better consolidated, connected to the rail network, and then distributed onward by partners, delivery costs have the potential to become more competitive, and the impact will return to businesses, MSMEs, and the public through a healthier supply chain.
KAI will continue to open collaboration opportunities with the government, logistics partners, businesses, industrial areas, and MSMEs to expand the role of railways in retail goods distribution. Support for logistics hubs, intermodal integration, first-mile and last-mile access, and consolidation of retail shipments are key so that railways can contribute more significantly to reducing national logistics costs.
With a consistent growth trend, KAI’s retail freight serves as a signal that rail-based logistics deserves to be positioned as one of the government’s strategic agendas. The greater the share of goods shifting to railways for main intercity journeys, the greater the opportunity for Indonesia to build a more efficient, competitive distribution system that delivers direct benefits to the economy and society.