Performance Analysis of PT. KAI as a Provider of Railway Transportation Services in Indonesia

Tauhid Nur Azhar

Photo by Pranawa Capture on Unsplash

Introduction

Railway transportation is one of the backbone systems of public transportation and goods in Indonesia, and also plays an important role as a locomotive driving the country’s economy.

Indonesia has the longest railway network in ASEAN. In 2023, the length of the railway network in Indonesia reached 8,260 kilometers, ranking sixth in Asia Pacific.

The length of the active railway network in Indonesia is approximately 6,880 kilometers. The island of Java has the longest active railway network, with 4,882 kilometers and 473 stations.

The Ministry of Transportation of the Republic of Indonesia (Kemenhub RI) targets the length of the railway network in Indonesia to be 7,451 kilometers in 2024. To achieve this target, the allocated budget for railways in 2024 is IDR 9.68 trillion.

PT. Kereta Api Indonesia (PT KAI) as the main operator of railways in Indonesia plays an important role in connecting various regions in the archipelago. Through the optimization of inter-modal connectivity, integrated railway services, and increased logistics capacity and safety.

Indonesia itself is a country in Asia with a very long history of railways, even being one of the pioneers in Asia. The presence of railways in Indonesia began with the first laying of the railway track in the village of Kemijen, Friday, June 17, 1864, by the Governor-General of the Dutch East Indies, Mr. L.A.J Baron Sloet van den Beele. The development was initiated by Nederlands-Indische Spoorweg Maatschappij (NIS) led by Ir. J.P de Bordes from Kemijen to the village of Tanggung (26 km) with a gauge of 1,435 mm. This section of the road was opened for public transportation on Saturday, August 10, 1867.

Along with the long history of this journey, PT KAI has committed to providing more efficient, safe, and sustainable services. This study aims to analyze the potential for increasing the capacity of public service management by PT KAI, using a model of synthesizing objective data from annual reports over the past five years.

There are several things that are prioritized in this study, based on observations of global transportation trends, regional economic trends, and various scientific aspects related to the performance of public transportation systems.

1. Inter-Modal Connectivity Inter-modal connectivity is key to increasing mobility and logistics efficiency. PT KAI has expanded its railway network to connect various modes of transportation, such as buses, sea transport, and airplanes. Initiatives such as integrating stations with urban transportation services and airports, as well as developing railway lines to ports and bonded areas, are expected to speed up the transfer of goods and passengers.

Over the past five years, PT KAI has continued to develop integrated inter-modal services, such as airport rail connections (Railink), Light Rail Transit (LRT), and the development of hub stations that integrate commuter, long-distance, and freight services. This aims to increase the ease of mobility and efficiency of goods distribution in urban and inter-regional areas.

According to PT KAI’s annual report, there has been a significant increase in the number of passengers using multimodal services, with an average growth rate of 6% per year over the past five years.

2. Integrated Railway Services The provision of integrated railway services between long-distance trains, commuters, feeder/LRT, and airport trains has become the main focus of PT KAI. The development of hub stations that serve as business and transportation centers has strengthened KAI’s position as the backbone of public transportation.

Data shows that the success of this integration has led to a 15% increase in the number of passengers in the Jabodetabek region and other areas, particularly with the operation of commuter lines (KCI) and LRT (Jabodebek).

KRL Commuter Line is a rapid transit system based on electric railway (KRL) operated by PT Kereta Commuter Indonesia (KAI Commuter). KCI services have continued to grow year by year, along with the increasing capacity of facilities and infrastructure in the Jabodetabek area, such as the operation of Manggarai Central Station as a hub from several strategic routes, as well as the completion of the renovation and development of Jatinegara Station, which serves as an inter-modal and integrated hub with long-distance train services.

As of September 15, 2024, KAI Commuter recorded 260,197,623 users across all operational areas. Meanwhile, in the period of January-June 2024, KAI Commuter served 156.7 million users in the Jabodetabek area.

In May 2024, KAI Commuter served 27.05 million users, which was the peak number of users during that period. While in July 1–12, 2024, the number of KRL Commuterline Jabodetabek passengers reached 1.054 million per day. Bogor Station is the station with the highest volume of users, with 16.7 million users.

The majority of users use the Kartu Multi Trip (KMT) as a transaction method, which is 49.42%. While users of Kartu Uang Elektronik (KUE) Bank are 34.2%, and passengers using QR code payment are 16.46%.

Meanwhile, the relatively new LRT, which integrates services with the Jakarta-Bandung high-speed train at Halim Station and with the Commuter Line at Dukuh Atas Station, has served 5,968,184 users as of the third quarter of 2024. The number has grown 23% compared to the previous quarter, which was 4,844,096 users.

Services that also have a significant impact on social change and multi-aspect economic benefits, such as the speed of travel time, reduced environmental impact, and increased dynamics of the real sector and regional economic activities, as well as avoiding stress and other effects caused by congestion, are the Jakarta-Bandung high-speed train services.

The Whoosh high-speed train is the first high-speed train service in Indonesia and Southeast Asia. This high-speed train has a speed of up to 350 km/h and serves four stations, namely Halim, Karawang, Padalarang, and Tegalluar.

As of July 2024, the number of passengers on the Whoosh high-speed train has reached 4.2 million people. The average number of passengers on the Whoosh high-speed train per day is 18,000 people. On October 21, 2023, the Whoosh high-speed train reached its highest number of passengers, with 11,329 passengers.

The number of Whoosh high-speed train trips continues to increase from 14 regular trips per day in October 2023 to 48 regular trips per day since May 2024. The capacity of the Whoosh high-speed train is 601 passengers per departure (1 trainset).

Meanwhile, in the passenger transportation sector, which is an important part of the economy, including the tourism sector and cross-regional welfare distribution programs, long-distance trains (KAJJ) play a very significant role.

The following are the passenger data for long-distance trains (KAJJ) in 2023 and 2024. Where in the period of January-September 2023, the number of domestic KAJJ passengers was 46.6 million people, up 22.27% compared to the same period in 2022.

Meanwhile, in the period of Christmas 2023-New Year 2024, the number of KAJJ passengers was 2,889,523 people, up 27% compared to the same period in 2022.

In general, in the first quarter of 2024, the number of KAJJ passengers increased by 11% compared to the first quarter of 2023.

3. Passenger Experience Passenger experience is one of the key elements in increasing PT KAI’s competitiveness. Factors such as punctuality, availability of schedules, affordable ticket prices, and the quality of on-board services (such as cleanliness, comfort, and safety) are of great concern. According to PT KAI data, there has been an increase in passenger satisfaction of 8% every year. PT KAI’s efforts in digitalizing ticket services and increasing the quality of information available to passengers also contribute to this increase in experience.

PT KAI consistently improves passenger experience through various innovations. One of the significant achievements is the increase in the number of passengers, which in 2022 was recorded at 53.82 million passengers, up 134% compared to 2021.

This is supported by the increase in services such as the modernization of railway infrastructure with more comfortable facilities (compartment suite, luxury, panoramic, dining on train, executive and economy new generation products INKA and refurbished Balai Yasa), the addition of boarding gates with Face Recognition technology at several stations, and the update of the KAI Access application, which serves as a super app for traveling. All of this aims to improve the comfort and ease of travel for passengers.

4. Increased Logistics Service Capacity PT KAI also focuses on increasing the capacity of logistics services as part of the company’s diversification strategy. Over the past 5 years, the number of goods carried by trains has increased by 12% per year.

The main driving factor is the development of logistics infrastructure, including special cargo lines and special cargo trains that speed up the distribution process. PT KAI also works with industry players and the government to optimize cargo transportation, particularly for agricultural, mining, and manufacturing commodities.

PT KAI also plays a very important role in the management of the national energy supply chain, or energy logistics management related to the supply and demand of coal from Sumatra (PT. Bukit Asam).

Based on the operational data of PT Kereta Api Indonesia (KAI) in the freight sector, particularly related to the operation of flat wagons and coal transportation in Sumatra, PT KAI continues to significantly increase its logistics service capacity.

Between 2020 and 2022, KAI has brought in 981 flat wagons to support the transportation of goods, including coal, as well as 36 new locomotive units.

The transportation of coal by KAI in South Sumatra has increased every year, with the volume of transportation reaching 32.6 million tons in 2020, then increasing to 38.3 million tons in 2021, and 45.4 million tons in 2022. As of October 2023, PT KAI has transported 41.9 million tons of coal, with a target to reach 84.1 million tons by 2027.

Efforts to develop infrastructure, such as the construction of a double track from Tanjung Enim to Kertapati, as well as the addition of operational and maintenance facilities, also play a role in supporting the increase in logistics capacity, especially coal transportation. KAI targets the transportation of coal in the southern part of Sumatra to reach 105 million tons per year in line with the completion of several important infrastructure projects.

A recap of the data on freight transportation in general shows a significant increase in KAI’s performance. This includes the transportation of fuel, fertilizer, and cement, as well as containers. As of September 2024, PT Kereta Api Indonesia (KAI) has transported 50,987,328 tons of goods, with coal being the main commodity. This figure has increased by 8% compared to the same period last year, which was 47,174,683 tons.

In the first semester of 2024, KAI transported 32,872,889 tons of goods, with an increase of 7%. Meanwhile, in May 2024, the transportation of goods by train grew 9.81% on a monthly basis compared to April 2024.

During January to August 2024, the on-time departure rate of freight trains reached 94.64%. The on-time arrival rate of freight trains also improved, from 86.02% to 90.6%.

5. Improvement in Safety, Security, and Reliability of Infrastructure

The aspect of safety and reliability of infrastructure (in accordance with PM №24 of 2015) is a top priority in the management of PT KAI’s services. The company’s annual report shows a significant investment through the vertical work unit in the Directorate General of Railways (DJKA) of the Ministry of Transportation, in the replacement of rails, the construction of double tracks, the development of signaling systems, and the improvement of traffic control systems. This system is able to detect and prevent potential accidents and improve operational efficiency.

The number of train accidents decreased by 25% over the past 5 years, despite an increase in the number of passengers and goods transported. According to data from DJKA, between 2019 and June 2023, there were 63 train accidents recorded in Indonesia. The most frequent accidents occurred in 2020, with 18 incidents. Meanwhile, in the first half of last year, there were 7 train accidents.

During this period, the most common type of accident was derailment, with the highest number of incidents occurring in 2020, with 17 incidents. As of June 2023, there were 7 derailment incidents recorded.

Based on the causes, the train accidents that occurred over the past 5 years were mostly caused by infrastructure and equipment factors (42 incidents), followed by operational human factors (6 incidents) and external factors (5 incidents).

Efforts to improve the system and increase safety guarantees have been made continuously, including:

1. Following up on recommendations and suggestions for improvement from the National Transportation Safety Committee (KNKT) which has investigated each accident in the railway mode objectively and integrally.
2. Improving the capacity of infrastructure and equipment that supports the improvement of safety and security aspects.
3. Improving the capacity and competence of human resources involved in safety management.
4. Updating systems and technologies that can guarantee safety (signaling/interlocking systems, centralized train control, equipment and infrastructure monitoring, early detection systems, etc.).
5. Financial Performance Profile

From a financial perspective, PT KAI’s annual report over the past 5 years shows financial stability despite facing external challenges such as the COVID-19 pandemic. The company’s revenue has increased by an average of 5% per year, with the largest contribution coming from passenger and logistics services.

Although there was a decline in the number of passengers during the pandemic, revenue from freight services remained stable, even experiencing growth.

The dynamics of the company’s financial health, which is part of public services, can reflect the complexity of managing a company that provides services related to the needs of many people. If in 2024 there is a significant improvement in financial performance, then we also need to evaluate the performance in previous years, especially in relation to various conditions such as force majeure due to the pandemic, or the early years of investment in infrastructure and equipment.

In 2023, PT KAI recorded a net profit of IDR 1.87 trillion, up 11% compared to the previous year. Revenue also increased to IDR 27.76 trillion. Meanwhile, in 2022, PT KAI experienced a net profit increase of -0.87% (recovery phase from the pandemic).

In the pandemic year of 2020, PT KAI experienced a net profit decline of -131.27%. This decline was likely caused by the Large-Scale Social Restriction (PSBB) policy implemented since April 24, 2020.

Conclusion

The improvement in PT KAI’s public service management capacity reflects the company’s commitment to providing more integrated, safe, and efficient services. Through the optimization of connectivity between modes, improvement of passenger experience, development of logistics capacity, and focus on safety and reliability of infrastructure, PT KAI has successfully improved its operational and financial performance.

Data from the annual report shows a positive growth trend, both in terms of the number of passengers, volume of freight transportation, and company revenue, as well as an increase in consumer satisfaction, in this case, passengers.

The level of public satisfaction and trust in the railway transportation service provider can be analyzed, among others, through the increase in the use of services, loyalty (engagement), and positive sentiment on the quality of services.

Further Reading

1. PT Kereta Api Indonesia. (2018–2023). PT KAI Annual Report 2018–2023. Jakarta: PT Kereta Api Indonesia.
2. Central Bureau of Statistics. (2023). National Transportation Statistics. Jakarta: BPS.
3. Dilla, A., & Sugiharto, B. (2020). “Intermodal Connectivity in Indonesia: The Role of Railways in Improving Mobility.” Indonesian Transportation Journal, 15(2), 100–115.
4. Hidayat, M. (2021). “Digitalization and Transformation of Railway Services in the Pandemic Era.” Infrastructure and Transportation Journal, 9(3), 55–70.
5. Indonesian Ministry of Transportation. (2022). National Railway Strategic Plan. Jakarta: Ministry of Transportation.
6. Kompas. (2023). Improved Performance, KAI Earns Net Profit of IDR 1.87 Trillion in 2023. Retrieved from Kompas.
7. Bisnis Indonesia. (2023). PT KAI Operates New Train, Targets 45.5 Million Passengers in 2023. Retrieved from Bisnis Indonesia.