PT Kereta Api Indonesia - Service Transformation: Making Intangibles Tangible
How did a long-established, state-owned company foster innovations? What factors motivated this shift? And, what impact did these changes have on both the company and its customers?
At a glance
Country
Indonesia
Industry
Transportation Services
Year Established
1945
Revenue
US$ 16 billion
(as of 2023)
Abstract
This case study examines the transformation of PT Kereta Api Indonesia (KAI), Indonesia’s long-established and state-owned railway company, from a traditionally industrial railway operations company to a modern, customer-oriented service provider. Under Ignasius Jonan’s leadership (2009–2014), KAI tackled financial losses, outdated facilities, and poor public perception through a series of innovative changes.
Key initiatives included operational upgrades of tangible elements coupled with cultural shifts emphasizing customer satisfaction and employee engagement. Notable technological advancements like the Rail Ticket System (RTS) and facial recognition boarding streamlined services and improved efficiency.
As a result, KAI reversed financial losses, doubled passenger numbers, and significantly boosted customer satisfaction scores. The case highlights the role of visionary leadership, customer-centric strategies, and technological integration in driving the revitalization of state-owned enterprises.
All rights reserved. © 2025 Nikkei Business Lab Asia. No part of this publication may be copied, stored, or transmitted in any form. Copying or posting is an infringement of copyright.
Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).