Bali LRT construction set to complete in September 2024
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Pembangunan LRT Bali ditargetkan September 2024
By Ichsan Amin
Jakarta, ID – The Transportation Ministry stated that the construction of phase 1A of the light rail transit (LRT) in Bali was set to commence in September 2024. However, the decision is in the hands of Bali Provincial Government.
Railways Director General of the Transportation Ministry Risal Wasal explained that the track installation for the Bali LRT was set to start from I Gusti Ngurah Rai Airport to Canggu. From Canggu, it will extend to Mengwi Subdistrict.
“This is when phase 1A is completed, which is supposed to commence in September this year. We hope it can be constructed immediately,” Risal said when he was contacted by Investor Daily in Jakarta on Monday (10/6/2024).
However, according to Risal, the sustainability of the LRT project will rely on Bali Provincial Government as the majority shareholder. “Until now, the feasibility study has only been conducted up to phase 1A,” he revealed.
Meanwhile, Railway Traffic and Transportation Director of the Railways Directorate General of the Transportation Ministry Arif Anwar added that the feasibility study of phase 1A covered the route from I Gusti Ngurah Rai Airport to Sunset road, spanning 6.04 kilometres (km).
“Regarding the target and investors, the one who knows best is Bali Provincial Government. The Bali LRT is a provincial railway [system],” he revealed.
Arif also explained that the government has provided an opportunity for Bali Provincial Government to seek alternative investors.
“This means the construction can be proceed using loans or through implementing public-private partnership (PPP). We also cannot provide certainty as the one who can decide is Bali Provincial Government,” he stated.
The construction plan of phase 1A will cover I Gusti Ngurah Rai Airport-Kuta-Pura Desa Adat-Central Park-Sunset Road.
“The total length reaches 6.04 km with an approximate investment cost of US$876,“ he explained.
Bali Provincial Government holds the majority share at 51%, while the central government holds 49%.
Addressing traffic congestion
On a separate occasion, a transportation observer from Unika Soegijapranata in Semarang, Djoko Setijowarno, said that the Bali LRT was crucial to address traffic congestion in Bali as a national tourism centre.
According to him, the LRT is expected to reduce the number of motor vehicles used by foreign tourists. Additionally, traffic congestion in Bali can be managed by regulating the movement of motorcycles.
“We are waiting for the Bali LRT to be supported by stringent policies from the local government. Roads in the centre of Bali needs a medium-sized mass transportation [system]. Buses also need to have high mobility specifications,” he added.
Furthermore, he said that the more important aspect was traffic organisation in Bali with support from the LRT and enforced regulations. For instance, regulations on helmet use or limitations on motorcycle usage, especially for foreign tourists, are crucial.
“Motorcycles are easily rentable and cheap. Now, it is only a matter of attracting passengers, both locals and foreigners, to use the LRT. Now, the key is to attract passengers, both locals and foreigners, to use the LRT. If the local government or the central government gets involved, subsidies can be provided,” he stated.
Djoko added that the implementation of an LRT in Bali also required attention to feeder transportation. “The solution must be found. Feeder transportation must obviously be available with smaller vehicles, such as angkot in Jakarta that is provided through JakLingko,” he added.
Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the Bali LRT was a solution to address traffic congestion in Bali. Coordinating Minister Luhut said that, in the next two years, traffic congestion in Bali would worsen if not addressed.
“Referring to the growth of I Gusti Ngurah Rai Airport that is predicted to accommodate 24 million passengers by 2026,” Luhut said recently.
Meanwhile, Acting Bali Governor Sang Made Mahendra also feels that Bali needs a modern mass transportation system.
According to him, with an increase in tourism in Bali, traffic congestion will continue to occur in numerous points during busy hours. “At certain hours, traffic congestion always occurs in Bali, especially from I Gusti Ngurah Rai Airport to Kuta and Canggu,” Mahendra revealed.
Looking for investors
The government through Transportation Minister Budi Karya Sumadi at the start of 2024 met with South Korea Infrastructure and Transportation Deputy Minister Sangwoo Park. The meeting discussed the feasibility study and financing for the LRT construction.
At the meeting at Korea Territorial Development Museum in Seoul in South Korea, the Transportation Minister stated that the Indonesian government was committed to constructing urban mass transportation to address traffic congestion in numerous regions in Indonesia, including Bali.
“We will focus on commencing the first phase of the Bali LRT from I Gusti Ngurah Rai Airport to Central Park,” Transportation Minister Budi Karya said.
The Transportation Minister explained that the government invited South Korea to cooperate in the construction of the first rail-based mass transportation project in Bali. The feasibility study was conducted by Korea National Railways (KNR) with financing provided by Korea Exim Bank.
According to the Transportation Minister, KNR has a strong reputation and extensive experience as a railway company in South Korea. Regarding financing, Minister Budi Karya revealed that the government continued to discuss various schemes, such as official development assistance (ODA) or PPP.
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