Bali LRT Project Update: Bali Local Government to Hold Majority Stake of 51%

Bali's Ambitious Plan to Construct Light Rail Transit System with Help from Korea and UK (photo: fadhila nurhakim - unsplash)
Bali's Ambitious Plan to Construct Light Rail Transit System with Help from Korea and UK (photo: fadhila nurhakim - unsplash)

The LRT Bali initiative is forging ahead, marked by Transportation Minister Budi Karya Sumadi sharing the latest developments in the ongoing plans for the Bali LRT construction. The primary stakeholder in this venture will be the Bali Regional Government, holding a majority share of 51%.

Minister Budi Karya stressed the importance of embracing mass transit solutions to alleviate traffic snarls in Bali, considering the island’s status as a premier international tourism destination.

“Bali stands as a global tourism showcase, but it grapples with chronic traffic congestion that could backfire if not adequately addressed,” remarked Budi Karya in an official statement on Monday (18/12/2023).

In terms of project accountability, Budi Karya outlined that the Bali regional government would assume the lion’s share of ownership with 51%, while the central government would play a supporting role with a 49% stake.

He conveyed that the Bali Regional Government is ready to financially support the project, covering both capital expenditure (capex) and operational expenditure (opex).

Financial backing can take various forms, including collaborations between the government and private enterprises (KPBU). Budi Karya mentioned that South Korea had previously expressed its willingness to spearhead the LRT project in Bali.

He anticipates that, following extensive coordination with all stakeholders, the commencement of the mass railway transportation project in Bali will be expedited.

In a parallel development, Acting Governor of Bali Sang Made Mahendra underscored the urgent need for a modern mass transit system in Bali. He pointed out severe traffic congestion during specific hours, especially from I Gusti Ngurah Rai Airport to the areas spanning Kuta to Canggu.

Currently, the Bali Regional Government is prioritizing the construction of Phase 1 of the LRT, linking I Gusti Ngurah Rai Airport to Seminyak via Central Park.

During a site inspection, the Minister of Transportation, alongside the Acting Governor of Bali, toured the Central Park area. “We extend our appreciation for the President’s and Minister’s attention to advancing tourism in Bali,” he remarked.

For context, the government envisions establishing a transportation mode in Bali through Light Rail Transit (LRT). The estimated budget for LRT Bali is $671 million or IDR 10 trillion.

Covering a distance of 9.46 kilometers, this LRT project aims to streamline public transit between Ngurah Rai Airport and Seminyak, featuring four designated stops. The Bali Provincial Government kickstarted the LRT Bali project in 2020, targeting the completion of the feasibility study by 2023 and operational launch by 2027.

Moreover, based on the preliminary results of the feasibility study, the project is divided into two phases: Phase 1-A encompasses the route from the Airport to Central Park Station, spanning 5.3 km, and Phase 1-B covers the route from Central Park Station to Seminyak, measuring 4.16 km. Additionally, the second phase of the LRT Bali project, covering the Seminyak-Mengwitani route, is under careful consideration.