Investors have started sharing their interest in the Bali Rail Network Project.
The initiative has been on the cards for years, and leaders have been increasingly keen to get things moving to help tackle the island’s mounting traffic issues and create a reliable public transportation network.
On Wednesday, 29th May, an event was held at the Bali Governor’s Office called “Submitting Investment Interest in Bali Urban Rail and Associated Facilities and Submitting Qualification Documents.”
The event was attended by the Acting Governor of Bali, Sang Made Mahendra Jaya, the Indonesian Minister of National Development Planning, Suharto Monoarfa, and the Minister of Investment, Bahlil Lahadalia.
Acting Governor Jaya told the audience, “This event is a new milestone in the development of transportation infrastructure in Bali. Construction and development of tourism corridors equipped with train-based mass public transportation systems through a business-to-business investment model.”
Acting Governor Jaya acknowledged that fiscal constraints have played a part in the project, which has taken quite a long time to take form.
He also acknowledged that the traffic congestion experienced on a daily basis in tourist resorts like Canngu, Kuta, Seminyak, and Ubud must be urgently addressed.
Jaya also confirmed that potential investors have ‘moved quickly’ to complete the tender and procurement processes. He revealed that one company in the running is PT Bumi Indah Prima.
The event was also attended by the Regent of Badung Nyoman Giri Prasta, the Deputy Mayor of Denpasar, the Deputy Regent of Tabanan, and the Acting Regent of Gianyar.
Minister of Investment Bahlil Lahadalia has promised to provide a number of incentives for the construction of the project now referred to as the ‘Bali Urban Rail.’
Lahadalia confirmed that he would be making the acquisition of permits easier, scrapping tax on imported goods for development needs for the project, and tax breaks.
Minister Lahadalia added, “We from the Ministry of Investment will push for licensing matters. Whoever wins, please [go ahead]. We will speed up licensing.”
He added “Later we will also check, if we really have to give a tax holiday as long as we comply with the regulations, we will give it. This is the downstream version of tourism. If you’ve made a profit, don’t pay taxes or if you’ve made a profit, say you’ve made a loss. We’ll check that later.”
Speaking at the event the Minister of National Development Planning, Suharso Monoarfa, said “I would like to not have a tax holiday if possible. Because of that difficulty. Fiscally, we already have too many holidays. But when it comes to permits, import duties, why not. I agree with that. I heard the IRR is good. So don’t give tax (holidays) like that.”
While this stage of the project may not seem that important or significant to holidaymakers and long-stay tourists in Bali, this project will ultimately completely change the way in which the public moves around the island.
The Bali Urban Rail, as it is now being referred to, will connect I Gusti Ngurah Rai International Airport with Kuta, Seminyak, and Canggu. The rail service is also set to stop at Renon in Denpasar, Central Parking in Denpasar, and the newly revamped resort of Sanur.
What is still unclear is whether plans to create the Bali Urban Rail system as an underground network will be permitted.
There were tentative plans, and public conversations in 2023 that suggested at least part of the network would be an underground line.
However, concerns were raised regarding the high cost of such a construction endeavor, with many leaders noting that they want to be making progress as soon as possible, with work underway by the end of 2024.
Leaders in Bali have been cooperating and consulting with leaders in Jakarta regarding lessons that can be learned from the Jakarta Metro system, with Jakarta-based leaders turning to Bali authorities to learn about tourism development.
Source: Bali Sun