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PT. Kereta API Indonesia (PT. KAI).

The first rail track built in Indonesia was a 26-kilometer track between Kemijen and Tanggung built in 1864 by the Dutch colonial administration. The railway was operated by Staat Spoorwegen. The Indonesian government took over the asset after independence and the company was named Djawatan Kereta Api. The name was changed several times later with Perusahaan Negara Kereta Api (PNKA) in 1963, Perusahaan Jawatan Kereta Api (PJKA) in 1971, Perusahaan Umum Kereta Api (Perumka) in 1991, and finally PT Kereta Api Indonesia (Persero) in 1999.

PT. Kereta API Indonesia (PT KAI) is still the only railway company in the country although the monopoly rights have been abolished. PT. KAI The government still subsidizes the company in the form of public service obligation (PSO). The subsidy is for the economic class. The management of the company, however, has not improved much despite the subsidy. The company has been accused of poor management and inefficiency.

The management of PT. KAI said it has problem in improving the quality of its human resources and modernizing its facilities or replacing old locomotives and cars. Locomotives. Maintenance of the facility will take days, weeks, months, up to 4 years.

PT. KAI has units in Java and Sumatra serving passenger and cargo transport. Its passenger trains have cars with executive business and economic classes. Its cargo trains such as coal, oil fuel and cement trains. It also has special train for tourists.

Some of the cars used by PT. KAI date back to 1967 such as those used by the Bima Executive Business train serving the route of Jakarta-Surabaya. The latest cars were produced in 2007 used by the Argo Jati Executive train serving the route of Jakarta-Cirebon.


PT KAI plans to import second hand electric rail cars (KRL) from Japan at a price of Rp900 million each aged from 5 to 15 years. A new KRL produced by PT INKA is priced at Rp10 billion. PT KAI wants to increase KRL trains to serve the Greater Jakarta area. Based data from the Central Bureau of Statistics (BPS), the Greater Jakarta area accounted for 58.1% or 115 million of railway passengers in the country in 2008.

In 2010, the Transport Ministry will give three new locomotives to PT KAI valued at US$ 2 million each, to serve economic class trains. Three economic locomotives will be provided by PT. Inka. One of which is to be handed over this year and the rest in 2011.

The locomotives will be produced with the German technology as they are imported in completely knocked down form to be assembled by INKA.

In addition, PT KAI will also receive in grant 35 air conditioned economic class trains, 5 diesel trains and a set of rail buses from the ministry. PT KAI operates economic class trains with subsidy in the form of public service obligation (PSO). The government has provided Rp535 billion in PSO a year. For 2010, PT KAI wants an increase in the subsidy to Rp670 billion to make up for deficit in operating cost.

In 2012, PT. KAI will operate KRL trains serving commuter route of Padalarang-Bandung-Cicalengka. KRL train in the Padalarang-Bandung-Cicalengka route is part of the company's long term development program.

Construction of electric railway (KRL) is underway in the route of Padalarang--Bandung-Cicalengka in West Java. Commuters in the route are served by diesel train PT KAI is building a 800--kilometer double track between Jakarta and Surabaya starting in 2009 to be completed in 5 years. The railway directorate said the cost of the project will be around Rp 20 billion per kilometer.

Double tracks have been built in the routes of Jakarta-Cirebon-Cikampek and Cikampek-Tegal to be continued to Surabaya. Total investment of the 800 kilometer double track is estimated to reach Rp 16 trillion. Each year, PTKAI has a budget of only Rp 4 trillion.

PT KAI hopes that in the next five years, cargo transport will contribute 60% to its total income with passenger transport to account for 40%. Currently, cargo transport accounts for only 30% of its income.

PT Kereta Api predicted it could increase its cargo transport 10 times larger. Cargoes transported from Surabaya are partly those from the eastern part of the country. Cargoes from the eastern part of the country for Java are transported by ships to Surabaya. From Surabaya they are transported by trucks to other areas in the island including Jakarta.

Financial performance

PT KAI reported Rp4.32 trillion in income in 2008 with operating profit at Rp 40 billion. Around 30%-40% of the income was used to cover repair and maintenance cost, 30% for salaries and another 30% for fuel.

The performance in 2008 represented an improvement compared to previous year. In 2007 the company reported losses of Rp 40.5 billion when it set profit target of Rp 15.16 billion. The improved performance in 2008 was attributable to increase in the number of passengers, larger cargos and decline in accidents. Coal transport reached 10.2 million tons exceeding the target of 8.7 million ton. In 2007, the number of passengers totaled 175 million, up to 197 million in 2008. Accidents dropped in number to 118 in 2008 from 147 in 2007.

PT. KAI planned to use the profit earned in 2008 to buy 10 units of locomotives. Currently PT KA has 366 units of locomotive. PT KA also plans to operate 5 electric diesel trains in the route of Bandung-Yogyakarta-Surabaya, and Tegal-Purwokerto. In 2009, PT. KAI procured 10 units of double deck cars for use to transport motorcycles from PT Industri Kereta Api (Inka). A car could take 120 units of motorcycle.

In 2009, electric diesel rail trains (KRDE) came on line in Bandung and Surabaya-Mojokerto. PT KAI also plans to operate electric diesel rail trains in the route of Bandung-Yogyakarta-Surabaya, and Tegal-Purwokerto.

In 2009, PT KAI set income target at Rp 4.5 trillion, up 4.6% from the previous year.

Subsidiaries of PT KAI

PT. KAI has 6 subsidiaries.

PT. Reska was established in 2001 operating in train catering service, serving food and drinks for the passengers. Its business has expanded to opening cafe at stations such as in Semarang and Kutoarjo and mobile cafes in Bandung, Surabaya and Jakarta.

PT. KA The Greater Jakarta commuter trains of PT KAI is the operator of KRL in Jakarta and its satellite cities of Bogor, Depok, Tangerang and Bekasi.

PT. KA Pariwisata offer tour service including package tours. Now it has three trains--KA Wisata Nusantara, KA Wiasata Bali and KA Toraja.

PT. KA Logistik or known as PT KA Log, offer logistic service

PT. KA Property Management operates in the management of railway assets/property of PT. Kereta Api and other customers.

PT. Railink was established in 2006 as a joint venture with PT Angkasa Pura (AP) II, with share split of 60% and 40% in favor of PT KAI. Railink was established to build Soekarno-Hatta airport.

PT Railink has discussed cooperation with China Harbour (China) and Mitsui (Japan) to build the new track which will provide connection between the airport and Manggarai station through existing track in Jakarta.

PT. Industri Kereta Api (PT. Inka)

PT. Inka is a state company established in August 1981. It was originally a steam locomotive repair shop named Balai Yasa Lokomotif Uap owned by PJKA, now PT Kereta Api. The repair shop was located in Madiun. Since steam locomotives were no longer used, the repair shop was converted into a railway factory

PT INKA has formed a joint venture with General Electric to produce locomotives. Its products have been used in the country and partly exported such as to Malaysia.

PT Inka produces various types of locomotives, wagons and cars. PT INKA faced marketing problem after air transport service began to attract more travelers. Air transport service is growing more competitive with the operation of many budget airlines offering low cost service.

Among the products of PT Inka is CC Locomotives CC for trains with fare-meter, Prajayana electric trains (KRL-I) serving the route of Sudirman (formerly Dukuh Atas)--Serpong 1, electric diesel trains, etc.

In 2009 PT.Inka produced 75 sets of trains, up 50% from the previous year. In 2010, it has received order for 35 trains from the government. PT.KA has also placed order for 40 Executive trains.

PT Inka has a subsidiary PT Rekaindo Global Jasa, which is a joint venture between PT. Inka (49%) and Nippon Sharyo (39%) and Sumitomo (10%) and a cooperative of INKA workers Koperasi Karyawan Inka (2%). Rekaindo has a project produce fast train or Shinkansen Indonesia. The project is expected to be completed in 2020. The project will be financed by Japan Bank for International Cooperation (JBIC). The type of Shinkansen to be built in Indonesia is the N700 type. The project cost was estimated at Rp70 trillion when the rupiah was 2,300 per US dollar.
Trains of PT KAI, 2010

Types Names Routes Distance &


--Argo Bromo Surabaya-- 725 km (9
Executive Anggrek Jakarta hours)

 Dwipangga Jakarta-- 576 km (8
 Solo hours)

 Gede Bandung-

 Lawu Solo-- 576 km (7
 Jakarta hours 30

 Muria I Semarang-- 445 km (5
 Jakarta hours 30

 Muria II Semarang-- 445 km (5
 Jakarta hours 30

 Wilis Bandung-- 699 km (11
 Surabaya hours)

 Sindoro Semarang- 445 km
 Jakarta (5jam 30

 Jati Jakarta--

--Executive Sancaka Yogya-- 311 km (5
Business Surabaya hours).

 Lodaya Yogyakarta-- 447 km (8
 Bandung hours 30

 Gajayana Malang- 907 km (14
 Jakarta. hours 30

 Bima Jakarta- 825 km (13
 Surabaya hours)

 Taksaka Yogyakarta- 517 km (8
 Jakarta. hours)

 Sembrani Jakarta- 725 km (10
 Surabaya hours 30
 Pasarturi minutes)

 Harina Bandung-- 450 km
 Semarang, (7,5

 Turangga Bandung- 699 km (12
 Surabaya hours)

 Rajawali Semarang- 280 km (4
 Surabaya hours)

 Parahyangan Bandung- 173 km (3
 Jakarta hours)

 Gumarang Jakarta-- 725 km (12
 Surabaya hours)

 Cirebon Cirebon-- 219 km (3
 Ekspres Jakarta hours)

 Purwojaya Cilacap-- 454 km (7
 Jakarta hours)

 Mutiara Surabaya- 307 km (6
 Timur Banyuwangi hours 30

 Bangunkarta Madiun-- 738 km (13
 Jakarta hours)

--Economy Matarmaja Malang- 907 km (17
 Jakarta hours 30

 Pasundan Surabaya- 725 km (15
 Bandung hours 11

 Serayu Yogyakarta-- 517 km (10
 Jakarta hours 55

 Kahuripan Kediri 15 hours
 Bandung 21 minutes

 Kertajaya Surabaya-- 725 km (13
 Jakarta hours 5

 Tawang Jaya Surabaya 718 km (14
 Pasar hours 35
 Turi- minutes)

 Gaya Baru Surabaya 718 km (14
 Malam Gubeng-- hours 35
 Selatan Jakarta minutes)

 Brantas Kediri-- 746 km (16
 Jakarta hours 33
 Tanah minutes)

 Tegal Arum Tegal- 295 km (6 hours
 Jakarta 10 minutes)

Trains :

--Coal Coal train Tanjungenim-- 419,5 km

 Tanjungenim 159 km

 Cigading- 185 km

 Oil fuel Labuhan-- 146 km
 (BBM) Siantar

 Kertapati- 305 km

 Kertapati- 190 km

 Kertapati- 171 km

 Maos-Tegal 134 km

 Cilacap- 131 km

 Benteng- 100 km

 Container Gedebage- 159 km
 train Pasoso

 Jakarta 698 km (19
 gudang hours)
 Pasr Turi

 Singailagoa 743 km

 Parcel Jakarta 731 km (14
 train Gudang- hours)
 Pasar Turi

 Over Night Jakarta 731 km (12
 service Gudang- hours)
 train Surabaya
 Pasar Turi

 Cement Kerang
 train Talun--


 Indarung- 15 km
 Teluk Bayur

 Baturaja- 173 km

 Express Jakarta 731 km (19
 cargo train Gudang- hours)
 Pasar Turi

 Crude Palm Simalungun-
 Oil train Belawan


 Pulp train Niru-Tarahan 347 km (9
Tourist Nusantara
Train Bali


Types Capacity Start-up
 & number
 of cars

--Argo 400 seats (8 cars) 1997

 400 seats (8 cars) 1998

 300 seats (6 cars) 1995

 400 seats (8 cars) 1995

 350 seats (7 cars) 1997

 350 seats (7 cars) 2001

 200 seats (4 cars) 1998

 350 seats (7 cars) 1998

 400 seats (8 cars) 2007

--Executive 496 seats 1997


 416 seats (8
 executive) 1999.

 400 seats (8 1967

 400 seats (8 1999

 416 seats (8
 executive) 1995.

 260 seats (5 2003.

 312 seats (6 1995

 260 seats (5 2003


 488 seats (2
 executive & 6
 business) 2001


 584 seats (2
 executive & 7
 business) 1995

 360 seats (2
 executive & 4
 business) 1972

 615 seats (2
 executive & 6
 business) 1985

--Economy 1.060 (10
 Economic + 1
 Dining cars)

 742 (7 Economy
 + 1 Dining cars)

 954 (9 Economic
 + 1 Dining cars)

 742 (7 Economic +
 1 Dining cars)

 1.060 (10
 Economic + 1
 Dining cars)

 1.060 (10
 Economic + 1
 Dining cars)

 1.060 (10
 Economic + 1
 Dining cars)

 1.060 (10
 Economic + 1
 Dining cars)

 1.060 (10
 Economic + 1
 Dining cars)

Trains :

--Coal 14 units

 8 units

 6 units

 20 million tons of
 oil fuel/year

 700 ton/day

 30 ton/day

 30 ton/day

 30 ton/day

 30 ton/day

 500,000 tons/year


 22 seats, 16 seats
 Meeting Room and
 6 seats of special
 room (cabin), Mini
 Bar, Bathroom

Source: PT. KAI

Highlights of financial performance, 2008-2009 *

 Total income Profit
Year (Rp) (Rp)

2008 4.32 trillion 40 billion
2009 * 4.50 trillion 56 billion

Source: PT. KAI

Note: estimate

Subsidiaries of PT. KAI

No Subsidiaries Line of business

1 PT. Reska Train catering service

2 PT. Railink to operate Soekarno-Hatta airport trains yet
 to be built with stations in the airport and
 in the Jakarta city center

3 PT. KAI Commuter Operating Greater Jakarta commuter trains

4 PT. KA Parawisata Operating tourist trains

5 PT. KA Logistik Operate logistic trains

6 PT. KA Property Developer of buildings, bridges over land
 Management belonging to PT KAI

Source: PT. KAI
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Title Annotation:COMPANY PROFILE; Perusahaan Negara Kere
Comment:PT. Kereta API Indonesia (PT. KAI).(COMPANY PROFILE)(Perusahaan Negara Kere)
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Jan 1, 2010
Previous Article:Prospects and opportunity of investment in infrastructure 2010.
Next Article:Development of railway infrastructure.

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