More Efficient Logistics: Rail Freight Enhances National Economic Competitiveness
Logistics movement plays a direct role in price stability and the smoothness of economic activity. The continuously increasing distribution needs drive the use of modes with large capacities and predictable schedules so that interregional logistics flows remain maintained.
Throughout the first quarter of 2026, PT Kereta Api Indonesia (Persero) served 14,948,442 tons of freight transport. This volume shows ongoing distribution movement on a national scale, while also demonstrating the role of trains in connecting production areas with consumption centers.
Over a long period, growth trends also appear consistent. In the last decade, KAI's freight transport increased by 74.2%, from 40,060,714 tons in 2017 to 69.791,691 tons in 2025. This increase shows the growing demand for rail-based distribution alongside national economic activity.
From a capacity standpoint, the efficiency of rail-based transport is seen in its large hauling scale. One coal train set in southern Sumatra, for example, can carry up to 3,000 tons in a single trip. Compared to road transport, that volume is equivalent to about 120 trucks. This comparison shows the opportunity to reduce traffic congestion while lowering the burden on road infrastructure.
Hauling capacity is also supported by the capability of freight cars, which reach about 50 tons and continue to be developed up to 70 tons per car. In a single train set of up to dozens of cars, the hauling capacity can reach 4,200 tons in one trip. This scale allows large-scale distribution to be carried out more efficiently.
KAI Vice President of Corporate Communication Anne Purba stated that the increase in freight transport volume shows the need to strengthen rail-based logistics systems.
"The consistent growth in freight transport shows the need for large-scale distribution with time certainty. This serves as an important foundation to encourage the development of broader and more integrated railway infrastructure," Anne said.
This condition is relevant to the structure of national logistics costs. Currently, Indonesia's logistics costs range between 15% and over 20% of the Gross Domestic Product (GDP), while global standards range around 7 to 8%. This difference shows room for efficiency that can be achieved through strengthening rail-based transportation systems.
About 60% of national logistics activities are located on Java Island, with logistics cost values estimated to reach IDR 2,400 to 2,500 trillion per year. Strengthening railway infrastructure in regions with high movement is one of the steps that can drive large-scale distribution efficiency.
Operational performance further strengthens this distribution system. In the first quarter of 2026, freight transport punctuality was recorded at 95.97% for departures and 91.77% for arrivals. This data shows that rail-based distribution has a measurable and reliable operating pattern.
Anne added that strengthening railway infrastructure will have a direct impact on goods distribution across various regions.
"Network development and increased rail-based transport capacity will open opportunities for more equitable distribution. This will support smooth supplies and contribute to price stability in the community," Anne continued.
With a continuously increasing growth trend and large hauling capacity, strengthening railway infrastructure becomes a strategic step in building a more efficient national logistics system.
"This direction is expected to strengthen distribution connectivity, lower logistics costs, and support Indonesia's economic competitiveness," Anne concluded.
VP Corporate Communication KAI