Semester I 2026, KAI Retail Freight Reaches 123,810 Tons, Driving Rail-Based Logistics Strengthening

PT Kereta Api Indonesia (Persero) recorded that retail freight volume throughout the first semester of 2026 reached 123,810 tons. This achievement increased by 5.06% compared to the first semester of 2025, which recorded 117,851 tons, and grew by 21.84% compared to the first semester of 2024, which recorded 101,617 tons.

This growth indicates that the demand for retail goods distribution via rail continues to strengthen. The average monthly retail freight volume of KAI during January–June 2026 reached approximately 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 of KAI, Anne Purba, stated that retail freight is an important growth segment within Indonesia’s national logistics ecosystem. According to her, this service helps business actors access intercity distribution options that are more scheduled, high-capacity, and connected to partner logistics networks.

“KAI’s retail freight continues to grow because the market requires more efficient, structured, and intercity distribution. This signals that railways can take a greater role in the national logistics system, including supporting business players and MSMEs,” Anne said.

KAI’s retail freight services are operated under a Business-to-Business (B2B) model through strategic partnerships with logistics partners. Through this scheme, business actors, MSMEs, and the public can utilize rail-based delivery services via partner networks, service points, and last-mile distribution services available in the market.

In the logistics chain, rail transport plays a strong role in the middle-mile segment or the main intercity transport stage. Goods are consolidated by partners, transported via rail on main corridors, and then forwarded through last-mile distribution services to the final recipients. This structure allows railways to serve as the backbone of medium- and long-distance distribution, while road transport continues to play a vital role in first-mile and last-mile connectivity.

“Railways have advantages in capacity, schedule regularity, and efficiency for intercity transport. When combined with first-mile and last-mile networks from partners, businesses can achieve a more competitive distribution chain,” Anne said.

The strengthening of rail-based retail freight is becoming increasingly strategic as Indonesia’s logistics costs remain a major challenge for national competitiveness. The Coordinating Ministry for Economic Affairs recorded that Indonesia’s logistics costs stand at around 14.29% of GDP. High logistics costs can impact goods prices, export competitiveness, investment, interregional price disparities, and supply stability.

For global comparison, the World Bank notes 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 national supply chain efficiency, including by increasing the share of rail-based logistics.

With Indonesia’s 2025 GDP at current prices reaching IDR 23,821.1 trillion according to Statistics Indonesia (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 a 30% efficiency improvement could be achieved across the logistics system, the potential theoretical savings could reach around IDR 1,021 trillion per year. This illustrates the significant economic impact of improving logistics efficiency.

The government continues to encourage rail network development as part of efforts to reduce logistics costs and strengthen interregional economic connectivity. In 2026, the Coordinating Ministry for Infrastructure and Regional Development emphasized that an integrated rail network can significantly reduce logistics costs and improve interregional economic competitiveness.

Anne added that the growth of KAI’s retail freight could serve as momentum to strengthen national rail-based logistics policy. According to her, railways have significant potential to become the backbone of intercity distribution, especially on routes with stable cargo volumes, medium to long distances, and scheduled delivery requirements.

“The strengthening of rail-based retail freight should be seen as part of a broader national logistics efficiency agenda. When retail goods are better consolidated, connected to the rail network, and then distributed through partner logistics systems, shipping costs can become more competitive. The impact ultimately returns to businesses, MSMEs, and the public through a healthier supply chain,” Anne said.

KAI will continue to open collaboration opportunities with the government, logistics partners, business actors, industrial zones, and MSMEs to expand the role of railways in retail freight distribution. Support for logistics nodes, intermodal integration, first-mile and last-mile access, and shipment consolidation will be key to strengthening rail contributions to national logistics efficiency.

With consistent growth trends, KAI’s retail freight services signal that rail-based logistics deserves to be positioned as one of the government’s strategic priorities.

“The larger the share of goods shifted to rail for intercity transport, the greater Indonesia’s opportunity to build a more efficient, competitive logistics system that directly benefits the economy and society,” Anne concluded.

VP Corporate Communication KAI