Bali, renowned for its vibrant culture and picturesque landscapes, is undergoing significant infrastructure development to support its burgeoning tourism industry and enhance residents' quality of life. The Indonesian government has initiated several key projects aimed at improving transportation, waste management, and overall connectivity on the island.
These infrastructure projects represent a concerted effort by the Indonesian government to support Bali's economic growth, enhance tourism, and improve the quality of life for its residents. Investors and stakeholders should monitor these developments closely, as they present significant opportunities and will shape the island's future landscape.
1. Bali Light Rail Transit (LRT) System
The government has embarked on the Bali LRT project to address escalating traffic congestion. The initial phase, connecting Ngurah Rai International Airport to central tourist hubs like Kuta and Seminyak, commenced construction in September 2024, with completion targeted for 2027. This 20-kilometer line is projected to cost approximately IDR 10 trillion (USD 700 million) and is expected to significantly reduce travel times for residents and tourists.
2. Jagat Kerthi Bali Toll Road
The Jagat Kerthi Bali Toll Road, a 96.21-kilometer highway linking Gilimanuk to Mengwi, aims to enhance connectivity between Bali’s western and southern regions. Construction began in September 2022, with completion anticipated by 2025. This toll road is expected to reduce travel time between Gilimanuk and Mengwi from 4-5 hours to approximately 1.5 hours, facilitating smoother transportation of goods and passengers.
3. Bali Maritime Tourism Hub (BMTH)
The BMTH project focuses on developing Benoa Port into a world-class maritime tourism hub. With an investment of IDR 5.2 trillion (USD 360 million), the project includes the construction of cruise terminals, yacht marinas, and supporting facilities. Scheduled for completion by 2025, the BMTH is expected to boost Bali’s appeal as a premier cruise destination, attracting more international visitors.
4. Waste Management Initiatives
Addressing environmental concerns, the Bali Provincial Government has partnered with Weiming Environmental Protection Group to implement advanced waste incineration technology. This initiative aims to process 1,500-2,250 tonnes of waste daily, significantly improving waste management and reducing pollution. The project, operating under a Build-Own-Operate (BOO) model for 40 years, is expected to be operational by 2025.
5. New Northern Bali International Airport
To alleviate pressure on the existing Ngurah Rai International Airport, plans for a new international airport in northern Bali have been revived. With an estimated investment of GBP 2.5 billion (USD 3.4 billion), the airport is designed to handle 20 million passengers annually and 126,000 flights per year. Construction could be completed within three years, potentially by 2027, enhancing accessibility to northern Bali’s attractions.
6. Smart Bus System Implementation
In a bid to modernize public transportation, Bali is set to launch a smart bus system by 2025. This system will integrate electric bus rapid transit with intelligent transport solutions, providing reliable and efficient services for both residents and tourists. The initiative aims to reduce traffic congestion and promote sustainable transportation options across the island.
7. Bali Urban Subway Project
Complementing the LRT, the Bali Urban Subway project is in the proposal stage. Plans to develop an underground rapid transit system connecting key areas aim to alleviate traffic congestion and support the island’s infrastructure needs as tourism grows. Discussions with the central government are ongoing to secure backing and funding for this ambitious initiative.
