KAI Records Growth in Retail Freight Transportation, Goods Distribution Volume Rises 17 Percent in Two Years
PT Kereta Api Indonesia (Persero) continues to develop its freight transportation services through retail freight transportation as a Business-to-Business (B2B) service that supports the distribution needs of corporate customers. This service is part of the rail-based logistics ecosystem, utilizing a railway network with large transport capacity, scheduled journeys, and connectivity between regions.
Throughout January–August 2026, KAI’s retail freight transportation volume reached 169,044 tons, increasing from 163,821 tons during the same period in 2025 and 144,250 tons in 2024. This growth represents an increase of 17.2 percent compared to the same period in 2024.
The growth demonstrates the increasing utilization of railways by business customers to support the distribution of various commodities with transportation characteristics that require large capacity, scheduled journeys, and efficiency for medium- to long-distance deliveries. Through its B2B retail freight transportation service, KAI helps connect distribution needs between companies within a more integrated supply chain.
KAI Vice President of Corporate Communication Anne Purba said that the development of retail freight transportation is part of KAI’s efforts to expand the contribution of railways to the national logistics system.
“KAI continues to develop freight transportation services by ensuring reliability, capacity, and distribution efficiency. Railways have a strategic role in supporting the smooth flow of supply chains from production centers to various regions,” said Anne.
Based on the 2024 Indonesia Logistics Report by the Ministry of National Development Planning/National Development Planning Agency (Bappenas), logistics costs are an important factor in national economic competitiveness. The government continues to promote greater logistics efficiency through stronger multimodal connectivity, including optimizing the role of rail-based transportation.
Railways offer advantages in transportation efficiency because they can carry large quantities of goods in a single journey while using less energy than road transportation for equivalent cargo capacity. This condition creates opportunities for businesses to reduce distribution costs throughout the supply chain.
In a trading system, transportation costs are one of the components that determine a product’s logistics costs. More efficient distribution helps businesses maintain their cost structures, improve supply certainty, and support product competitiveness in the market.
Logistics efficiency is also a global concern. Through the 2023 Logistics Performance Index (LPI), the World Bank stated that the quality of transportation infrastructure and the efficiency of logistics services are important factors in improving a country’s trade competitiveness. Indonesia ranked 61st out of 139 countries in the index, with improving connectivity quality identified as one of the key areas for development.
Meanwhile, the Food and Agriculture Organization (FAO), in its report The State of Food and Agriculture 2024, emphasized the importance of efficient distribution systems in maintaining food security and affordability, as costs throughout the supply chain also influence the prices paid by consumers.
In Indonesia, smooth distribution is also a key concern in maintaining price stability. Statistics Indonesia (BPS) regularly reports that the food, beverages, and tobacco group is one of the expenditure groups influencing national inflation dynamics. This highlights the importance of an efficient distribution system in maintaining a balance between supply and demand.
Through the development of retail freight transportation, KAI continues to expand rail-based logistics services that support the needs of industry, trade, and the distribution of various commodities. The growth in retail freight transportation volume indicates increasing customer confidence in railways as a safe, scheduled, and efficient mode of freight transportation.
“KAI will continue to improve the quality of freight transportation services by providing increasingly integrated logistics solutions. Optimizing rail-based transportation is expected to strengthen connectivity between regions and support a more competitive national logistics ecosystem,” concluded Anne.
VP Corporate Communication KAI