Keeping Indonesia’s railway business on track during pandemic

Among the many transportation companies, the railway enterprise within the nation has been thought of among the many most affected because it largely depends on passengers to generate revenues.

Indonesian railway firm PT Kereta Api Indonesia (KAI) served a mere 186.8 million passengers following the coronavirus outbreak in 2020 in comparison with 429.2 million passengers the earlier yr.

KAI Commuter, a subsidiary of the PT KAI serving commuter line, skilled the same decline: its passenger rely tanked to a mean of 300 thousand passengers per day from a mean of 1 million passengers per day.

Consequently, the corporate incurred losses in its every day income to the tune of Rp24.2 billion, with revenues dipping to Rp800 million from Rp20-25 billion.

KAI additionally reduce its capital expenditure in 2020 from Rp12 trillion to Rp9 trillion as a strategic transfer to patch up the money move leak.

This fueled issues over whether or not the state-owned railway firm might preserve its enterprise on observe, whereas supporting the federal government’s insurance policies pertaining to curbing COVID-19 transmission via the enforcement of a sequence of restrictions.

State-owned Enterprises (SOE) Minister Erick Thohir mentioned that the corporate wanted to slash its operation in the course of the pandemic, but it surely ought to proceed to enhance in a bid to outlive.

“The President has suggested us that we should hijack the momentum of the disaster to be able to make massive leaps,” Thohir remarked.

He then urged KAI to proceed to bolster the tradition of mutual cooperation in order that it’s in a greater place to face the altering instances.

Optimizing Freight Trains

KAI President Director Didiek Hartantyo mentioned that the corporate has three key methods for going through the present challenges in order that it will possibly develop robust amid the pandemic.

“Adaptation, innovation, and collaboration have turn into the vital keys for KAI to stay rising amid the present disaster,” he highlighted.

By way of these three key methods, KAI might want to suppose out of the field to resolve current issues, together with the declining variety of passengers which has led to income losses, he mentioned.

Aside from passenger trains, KAI believes that freight trains will help its enterprise to carry out effectively regardless of the COVID-19 pandemic, Hartantyo mentioned.

As of the primary half of 2020, KAI’s freight trains have contributed 43 % to the corporate’s complete income, changing into the principle income supply in the course of the disaster, he knowledgeable.

The falling variety of passengers has pushed KAI to optimize the freight practice enterprise via some strategic strikes, he added.

The corporate’s freight practice quantity in August 2020 reached 3.9 million tons, or 6 % increased in comparison with 3.7 million tons in July 2020, he mentioned.

As well as, KAI’s retail transportation service Rail Specific recorded a surge in freight transport, reaching 10,581 tons, or 73 % increased in June 2020 in comparison with 6,103 tons in Could 2020, he famous.

By the top of the primary half of 2021, the corporate’s freight practice service continued to carry out positively, Hartantyo mentioned. It served 28.2 tons from January to July 2021, up 8.9 % from 25.9 tons in the course of the corresponding interval of the earlier yr.

“The growing quantity of freight that KAI has served is essential for the corporate to outlive amid the extended COVID-19 pandemic,” he highlighted.

Nonetheless, he acknowledged that the pandemic has roughly impacted the corporate’s goal however it’s striving to make further effort by intensifying coordination with stakeholders.

The innovation that KAI has carried out might assist contribute to income, however the firm has not recovered all of the losses but, based on Djoko Setijowarno, a transportation skilled on the Soegijapranata Catholic College.

KAI ought to increase its freight practice service that has not been broadly chosen but by prospects, particularly in Java Island, he suggested.

Nonetheless, the federal government also needs to present fiscal incentives in order that prospects can change from vehicles to freight trains for transporting cargo, he added.

“The federal government, via the Finance Ministry, ought to eradicate the value-added tax of 10 % for many who make the most of freight practice companies,” Setijowarno advised.

He mentioned that if the federal government eliminates this tax, it is going to set off multiplier results, equivalent to lowering the extent of roads broken on account of overloaded and outsized vehicles.

Innovating Mushy Infrastructure

Aside from inflicting KAI to spice up freight practice companies, the pandemic has additionally pushed the corporate to innovate its smooth infrastructure additional to supply consolation to passengers touring by practice, thereby serving to the passenger rely get better.

By way of the KAI Entry app, prospects do not need to come back to the station simply to cancel a visit and refund their ticket so long as it has been up to date to the most recent model.

The corporate has additionally built-in the boarding system with the PeduliLindungi (to care and shield) app since July 23, 2021 to make sure the safety of passengers, KAI’s public relation vice chairman Joni Martinus mentioned.

“The built-in PeduliLindungi apps and KAI’s boarding system purpose to make it simpler for purchasers to undergo the doc checking course of in addition to to stop doc falsification,” he famous.

KAI has constantly utilized the journey necessities strictly, he mentioned, including that solely those that meet the requirement are allowed to board trains and all necessities are in step with the Transportation Ministry’s Round No.69 of 2021.

Regardless of the necessities and restrictions, KAI recorded as many as 156,797 passengers in long-distance trains and native trains, with common every day passengers reaching 22,400 throughout August 24-30, 2021, a rise of 20.7 % in comparison with 129,873 passengers and 18,553 common every day passengers throughout August 17-23, 2021, Martinus mentioned. 

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