KAI's Retail Freight Volume Grows 20.45% in Two Years, Strengthening Goods Distribution

The prices paid by consumers are influenced by various factors, ranging from production processes to distribution activities. Behind every product available in markets, stores, and distribution centers, there are logistics costs that serve as one of the key components determining prices. The more efficient the distribution process, the greater the opportunity to reduce costs, maintain supply availability, and keep prices competitive.

In this context, rail-based freight transportation continues to play an increasingly strategic role. PT Kereta Api Indonesia (Persero) recorded retail freight transportation volume from January to May 2026 at 101,652 tons. This figure increased by 3.25 percent compared with the same period in 2025, which recorded 98,453 tons. Compared with January–May 2024, which reached 84,391 tons, KAI’s retail freight volume grew by 20.45 percent over the past two years.

This growth demonstrates the increasing demand from businesses for transportation modes that can provide large carrying capacity, reliable travel schedules, and operational efficiency. Various commodities are transported daily through KAI’s retail freight services, ranging from consumer goods, manufactured products, and commercial goods to industrial raw materials.

Vice President of Corporate Communication KAI Anne Purba stated that every increase in freight transportation volume reflects continuously growing economic activities. Each shipment connects production centers with markets, businesses with customers, and various economic activities taking place across different regions.

"When distribution runs smoothly, industries can maintain productivity, businesses can manage inventories more efficiently, and communities gain better access to reliable goods supplies. Therefore, logistics efficiency has a very broad impact on the economy."

According to Anne, logistics efficiency is one of the important factors in improving national economic competitiveness. Based on calculations used by the government through the National Development Planning Agency (Bappenas), Statistics Indonesia (BPS), and the Coordinating Ministry for Economic Affairs, national logistics costs remain around 14.29 percent of Gross Domestic Product (GDP). The government has set a target to reduce this figure to 12 percent by 2029 as part of efforts to strengthen national economic competitiveness.

This figure shows that logistics costs remain one of the components affecting Indonesia’s economic cost structure. Various studies also indicate that logistics components contribute around 14 percent of the prices of goods circulating in the domestic market. This means that for every Rp100 spent by consumers on goods, approximately Rp14 is related to distribution and logistics processes.

"The more efficient the distribution process, the greater the opportunity for businesses to control operational costs. The impact can be seen through smoother supply chains, more competitive business costs, and the ability of industries to provide products at more affordable prices."

This condition is increasingly relevant considering that Indonesia is an archipelagic country with economic activities spread across various regions. High logistics costs can affect national product competitiveness, widen price disparities between regions, and reduce supply chain efficiency. Conversely, more efficient distribution will strengthen economic connectivity and accelerate the movement of goods from production centers to consumption areas.

Anne explained that rail transportation has advantages in supporting this efficiency because it can transport large quantities of goods in a scheduled and sustainable manner. This characteristic provides greater certainty for businesses in managing distribution while helping reduce transportation burdens on road networks.

On Java Island, which serves as the center of national industrial and trade activities, the demand for efficient logistics systems continues to increase. Various studies estimate that around 60 percent of national logistics activities take place on Java. With the economic value of logistics estimated at approximately Rp2,400 to Rp2,500 trillion annually, improving distribution efficiency will have a significant impact on business costs, trade flows, and national industrial competitiveness.

"Logistics is an important part of economic growth. When raw materials arrive on time, production processes can run smoothly. When goods move faster and more efficiently, businesses have greater opportunities to improve their competitiveness. Ultimately, these benefits will be reflected in more stable supply availability, more competitive prices, and a more productive economy."

Going forward, KAI will continue strengthening logistics services through increased transportation capacity, distribution network development, and integration with various strategic logistics hubs. These efforts are carried out to support the creation of a more efficient supply chain system capable of responding to continuously evolving economic needs.

"We want to ensure that the growth of retail freight transportation goes hand in hand with improvements in national logistics efficiency, so that distribution becomes smoother, business costs become more competitive, and Indonesia’s economic competitiveness continues to improve."

VP Corporate Communication