KAI Logistics Distribution Costs Driven by Multiple Factors, Not a Single Cause
A recent study by Adang Djatnika Effendi (UIN Sunan Gunung Djati Bandung), Amelia Hayati (Universitas Padjadjaran), and Fauzi Abdul Rohman (UIN Sunan Gunung Djati Bandung) reveals that distribution costs at PT Kereta Api Logistik (KALOG) from 2019 to 2024 are not determined by a single factor. Instead, the research shows that a combination of road infrastructure conditions, fuel prices, and logistics fleet management jointly shapes cost efficiency.
Published in 2026, the study highlights a critical issue in Indonesia’s economy: persistently high logistics costs, which account for more than 14% of the country’s Gross Domestic Product (GDP). These high costs directly affect the competitiveness of Indonesian products in global markets.
A Persistent Problem: High Logistics Costs
It is often assumed that improving roads or lowering fuel prices will automatically reduce distribution costs. However, the findings challenge this assumption.
Despite significant government investment in infrastructure, Indonesia’s logistics performance has not improved substantially. This suggests that internal operational factors within logistics companies also play a major role.
PT KALOG, a subsidiary of PT Kereta Api Indonesia, operates rail-based logistics services supported by trucking for first- and last-mile delivery. This multimodal system creates operational complexity, making it an ideal case for analysis.
How the Study Was Conducted
The researchers used a quantitative approach, analyzing secondary data from PT KALOG’s annual reports and official government sources between 2019 and 2024.
Three main variables were examined:
-Road infrastructure conditions
-Diesel fuel prices
-Logistics fleet size and capacity
Distribution costs served as the main outcome variable. The study applied multiple linear regression to assess both individual (partial) and combined (simultaneous) effects.
Key Findings: No Single Dominant Factor
The study produced several important findings:
1. No variable is significant on its own
-Road infrastructure shows no significant effect
-Fuel prices show no significant effect
-Logistics fleet also shows no significant effect
2. All variables are significant when combined
This means distribution costs cannot be explained by a single factor. Instead, they result from the interaction of all three variables.
3. Strong explanatory power
-About 96.66% of distribution cost variations are explained by the combined model
Why Does This Happen?
The researchers point to an internal compensation effect within company operations.
For example:
-When fuel prices rise, companies may improve efficiency to offset costs
-Infrastructure improvements may have limited impact if fleet utilization is suboptimal
-Increasing fleet size does not necessarily raise costs if managed efficiently
According to Adang Djatnika Effendi, a partial approach is no longer sufficient to understand modern logistics costs.
“Distribution costs are shaped by interactions between factors, not by a single variable,” he explained.
Implications for Industry and Policy
The findings offer several important insights:
1. Integrated strategy is essential
Logistics companies cannot rely on a single solution such as adding fleets or reducing fuel consumption. A comprehensive approach is required.
2. Multimodal systems are key
Combining rail and trucking helps mitigate the impact of external cost fluctuations, especially fuel prices.
3. Broader government policy is needed
Infrastructure development alone is not enough. Policies should also support operational efficiency in logistics firms.
4. Energy risk management matters
Companies like KALOG can reduce fuel price risks through long-term contracts, efficiency improvements, and transport diversification.
A New Contribution to Logistics Research
This study provides fresh insights, particularly for developing countries:
-It uses real company-level data rather than macro-level analysis
-It highlights the difference between partial and simultaneous effects
-It emphasizes a systems-based approach to logistics cost management
The findings reinforce the idea that logistics efficiency depends not only on external conditions but also on internal strategies.
Author Profiles
Adang Djatnika Effendi
Lecturer and researcher at UIN Sunan Gunung Djati Bandung, specializing in logistics and transportation management.
Amelia Hayati
Academic at Universitas Padjadjaran with expertise in business management and transport economics.
Fauzi Abdul Rohman
Researcher at UIN Sunan Gunung Djati Bandung focusing on logistics and operational management.
Source
Effendi, A. D., Hayati, A., & Rohman, F. A. (2026).
“The Influence of Road Infrastructure, Fuel Prices, and Logistics Fleet on PT Kereta Api Logistik (KALOG) Distribution Costs 2019–2024.”
International Journal of Business and Management Practices (IJBMP), Vol. 4 No. 1, pp. 95–118.
DOI: https://doi.org/10.59890/ijbmp.v4i1.156
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