PT Kereta Api Indonesia (KAI), PT Bukit Asam Tbk (PTBA), and PT Semen Baturaja Tbk (SMBR) are collaborating to increase coal unloading capacity in the Kertapati area of Palembang, South Sumatra.

"KAI is working with PTBA and SMBR to enhance coal transportation capacity in Kertapati, aiming for completion by 2027," said KAI President Director Didiek Hartantyo in a statement on Wednesday in Jakarta.

The three companies signed a Memorandum of Understanding (MoU) regarding the Plan to Increase Coal Unloading Capacity in the Kertapati Area.

The MoU was signed by PTBA Business Development Director Rafli Yandra, KAI Business Development and Institutional Director Rudi As Aturridha, and SMBR Operations Director Muhammad Syafitri in Jakarta on Tuesday (22/10/2024).

"This initiative addresses the critical need to expand coal and cement unloading areas in the Divre III Palembang region to support national energy and infrastructure requirements," Didiek stated.

He further highlighted KAI’s positive performance in freight transport from January to September 2024, during which KAI transported 50,987,328 tons of goods, marking an 8% increase from the same period in 2023, which saw 47,174,683 tons.

Coal transport led with 40,828,696 tons, representing 80% of KAI’s total freight. Rail freight offers advantages like timeliness, safety, large capacity, zero illegal fees, and is managed by professional personnel.

"Rail freight also supports significant cargo capacity. Each railcar can carry 50 tons, equivalent to two container trucks," he explained.

In South Sumatra, one coal train can haul 61 cars or up to 3,000 tons, reducing the need for approximately 120 trucks.

"Rail freight also boosts logistical cost efficiency, reduces traffic congestion, and lowers pollution, supporting environmental sustainability," added Didiek.

He also noted that the collaboration maximizes each company's potential with a mutually beneficial approach and good corporate governance principles.

PTBA Business Development Director Rafli Yandra stated that the synergy is part of PTBA's efforts to boost coal transport capacity.

"This partnership is a strategic move for us to strengthen logistics and infrastructure pillars. By enhancing logistics capacity, we contribute more significantly to providing continuous energy for the nation," Rafli said.

With coal reserves of 2.98 billion tons and resources of 5.81 billion tons, PTBA is one of Indonesia's largest coal resource managers.

He added that increasing logistics capacity is essential for accelerating coal reserve monetization and supporting national energy security.

SMBR President Director Suherman Yahya said the collaboration represents a strategic synergy among state-owned enterprises (BUMN).

He emphasized that Semen Baturaja fully supports the partnership to ensure a sustainable supply of raw energy materials.

"This synergy also enhances operational efficiency and positively impacts the regional economy and national infrastructure development," Suherman stated.