BALI- The Bali provincial government has unveiled plans for a massive subway development project near Ngurah Rai Airport (DSP) in Denpasar, with a total investment of US$20 billion or approximately Rp325 trillion.
PT Sarana Bali Dwipa Jaya (SBDJ), the project manager, announced PT Bumi Indah Prima as the main investor on Wednesday.
Bali $20 Billion Subway Project
SBDJ President Director Ari Askhara revealed that the project will construct underground rail infrastructure in stages. PT Bumi Indah Prima will coordinate with other investors to join the ambitious undertaking.
The Bali Subway project consists of four phases. The first two phases, scheduled for completion by 2031, require an investment of US$10.8 billion or about Rp175 trillion.
Phase one will connect Ngurah Rai Airport (DPS) to Central Park, Seminyak, and Canggu. The second phase will link Ngurah Rai Airport to Nusa Dua. Subsequent phases will extend the network to Sanur and Ubud.
I Gusti Ngurah Rai International Airport serves as Bali’s primary gateway to the world. Located just 13 kilometers from downtown Denpasar, this bustling airport connects the island’s metropolitan area to global destinations.
Ngurah Rai holds the distinction of being Indonesia’s second busiest airport, trailing only behind Soekarno-Hatta in Jakarta. The airport’s significance extends beyond Indonesia’s borders. It ranks among the most popular island destination hubs in Asia, attracting millions of visitors each year.
This large-scale infrastructure project aims to alleviate traffic congestion and improve transportation options in Bali’s key tourist areas. The subway system will provide faster, more efficient travel for both locals and visitors, potentially boosting tourism and economic growth on the island.
Non-Traditional Funding Process
The Bali Subway project takes an innovative approach to secure funding, as revealed by Askhara, the former President and Director of Garuda Indonesia. The project managers sought investors through a non-traditional method, asking candidates to present their vision, business plans, and project structures before determining their eligibility.
Initially, five investors showed interest in the ambitious subway project. After careful consideration and consultation with experts, PT Sarana Bali Dwipa Jaya (SBDJ) selected an investor prepared to fund the project without relying on state guarantees.
Acting Governor of Bali, Sang Made Mahendra Jaya, emphasized the importance of prioritizing local interests in the subway’s development. He urged PT SBDJ to focus on benefiting the Balinese community throughout the project’s implementation.
Jaya stressed the need to create job opportunities for local workers during the subway’s construction and operation phases. This approach aims to boost local employment and ensure that the project directly contributes to the island’s economic growth.
The Acting Governor also addressed concerns about ticket affordability for Bali residents. He insisted that the operating company must subsidize fares to keep them accessible for locals.
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