New Bali Subway Project Structured to Be Free of Possible Politicization
As reported by NusaBali.com, PT Bumi Indah Prima (BIP) has formally become the leading investor in the landmark Light Rail Transit (LRT) or Bali Subway Project. Groundbreaking for the first phase of the Bali Subway will take place in September 2024 at the Sentral Parkir Kuta Complex, eventually forming one of the stations on the transportation system’s main terminals.
The formal handover of the appointment letter by PT Sarana Bali Dwipa Jaya (SBDJ) designating PT Bumi Indah Prima/Bali Urban Rail and Associated Facilities as the Qualified Partner and Lead Investor from the Consortium took place on Wednesday, 24 July 2024, in a ceremony held at The Hotel Andaz Bali in Sanur, Bali.
Also attending the meeting in Sanur were the Minister for Taxation, the head of the National Development Planning Agency, Suharso Monoarfa, the Interim Governor of Bali Sang Made Mahendra Jaya, I Gusti Ngurah Askhara Danadiputra (a/k/a Ari Askhara), the CEO of PT SBDJ said that his company is collaborating with PT Jamkrida Bali – the party responsible for the development and construction of tourism corridors in Bali, especially in seeking large investor partners to finance the rail project.
A non-conventional approach to finance is being employed to accelerate the development and commencement of the Bali Rail Project’s construction. This novel approach invites consortia of prospective investors capable of developing the rail system from end-to-end to join now at the initial stage and submit a vision, business plan, project structure, suitability of engineering design, and technical details to gather the best-qualified investors who can proceed directly to the pre-construction phase and beyond.
Starting September 2024, the site office will operate from the Sentral Parkir Kuta location.
The construction of the Bali Subway Project will be done in four phases:
- Ngurah Rai International Airport – Kuta Sentral Parkir- Seminyak – Berawa – Cemagi,
- Ngurah Rai International Airport – Jimbaran – UNUD – Nusa Dua
- Kuta Sentral Parkir – Sesetan-Renon-Sanur
- Renon – Sukawati – Ubud.
Plans are for the Airport to Kuta and the Airport-Jimbaran-UNUD-Nusa Dia phases to be completed by 2028. The entire project has four stages and is targeted for completion in 2031.
The total investment for the first two phases is estimated at US$10.8 billion or Rp. 175 trillion. The entire four-phase project is estimated to cost US$20 billion or Rp. 325 trillion.
Regarding the massive project, Ari Askhara said: “We will also prepare quality Balinese human resources so that Balinese people can become operators and owners of this big project, not just spectators.” Askhara was the former President Director of Garuda Indonesia.
Plans call for each station on the new Bali Rail Network to have a unique theme, making the rail experience an exciting tourism attraction in its own right. For example, in Kuta, the focus will be on its role as a commercial center; in Seminyak, the focus will shift to entertainment; in Canggu/Berawa, the theme will reflect health and wellness; while in Cemagi/Munggu, nature is the theme, with a botanical underground park and a replica of a traditional village planned.
To support the development of telecommunications infrastructure, an undersea fiber optic cable will be pulled from Singapore directly to Bali – a distance of more than 3,000 kilometers to ensure independence and security related to signals, information, and telecommunications.
Acting Governor Mahendra Jaya said that constructing the Underground LRT Line will not violate Bali Regional Regulation Number 2 of 2023 concerning the Bali Provincial Spatial Plan for 2023-2043. According to him, constructing the railway line at a depth of 30 meters aligns with the Regional Regulations.
Mahendra Jaya asked investors also to consider the local community’s interests in Bali. The Acting Governor hopes that the development of underground train transportation can absorb as many local workers as possible. “We can understand that investors are interested because the market is tourists, but the local Balinese people’s tickets should not be expensive; the company must subsidize them for the Balinese people who ride the train,” said the Acting Governor of Bali.
Meanwhile, the Minister and Head of Bappenas, Suharto Monoarfa, remains confident that the LRT project in Bali can be completed regardless of the provincial’s future leadership. He said that with a financing scheme carried out entirely by the private sector, the chances of any political interests disrupting this project will be small. “I think the independence of this corporation is important. And, because the business activities to be achieved are for the prosperity of Bali, the Balinese people will guard this independence,” said Suharso.
The project, which potentially risks Bali and the Nation’s good name, will be transacted over an extended period. The first and second stages are targeted for completion in 2028, while the fourth stage is estimated to be completed in 2031. When finished, the subway system will belong to the entire Balinese community.
Suharso clarified that the Rail Project will not interfere with local provincial revenues (PAD) or the national budget (APBN), as it will be funded with supplemental funds from outside investors.
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