Bali Subway Project
The formal handover of the appointment letter for the Bali Subway Project 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 regarding the new Bali Subway Project 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 – 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.
Bali Subway Project
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 Bali Subway 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.
Sanur: “No” to Beach Clubs & Night Clubs?
I Kadek Agus Arya Wibawa, Deputy Mayor of Denpasar, the capital of Bali, announced that the municipality’s administration does not want to see the creation of “beach clubs” or “night clubs” along the Sanur Beach area of the Island.
Quoted by Balipost.com and the State News Agency Antara, Wibawa is worried that night clubs and beach clubs that host “exuberant” parties, such as those found at similar establishments in Bali’s southwestern coastal areas, such as Kuta, Legian, and Canggu, “would change the DNA” and tourism character of the Sanur area.
Jalan Danau Tamblingan, located along Bali’s Sanur Beach area, recently witnessed the opening of ICON-BALI. This mega-mall entertainment complex is home to an indoor amphitheater, a vertical forest, a butterfly park, a beachside sunset laser show, and a large shopping center.
The ICON Bali features 38,570 square meters of ground floor area with 30,000 square meters of lettable floor space/
Deputy Mayor Arya Wibawa and Mayor I Gusti Ngurah Jaya Negara do not know of any company seeking permission to open a “beach club” on Sanur Beach.
Wibawa explained that investors can now directly input their development plans to the relevant agencies through an online single submission system (OSS).
Because of this, Wibawa said he would urgently summon the Permit and Licensing Agency for the City of Denpasar to collect information that might exist related to a proposed beach club in Sanur.
“In principle, the Mayor of Denpasar wants Sanur to be preserved with its existing DNA. That means any development of tourism in Sanur will be linked to upgrading (current) facilities,” said Wibawa.
In further explanation, he said that improvements in existing facilities include projects such as installing outdoor lighting and upgrading sidewalks and roadside drains. The Mayor’s office is also seeking means to reduce traffic congestion in Sanur’s business district.
Bali Special Economic Zone
The long-standing proposal that the Sanur Beach area of Bali become a Special Economic Zone (KEK) has received the agreement of the National KEK Council chaired by the Coordinating Minister for the Economy. Airlangga Hartanto, at a meeting of the Council held on Friday, 22 July 2022.
It is now expected that the National KEK Council will recommend to the Indonesian President that government regulations be promulgated to support a Special Economic Zone status for Sanur Beach.
Quoted by Balipost.com, Minister Airlangga said in a written statement, “With this (recommendation), the National KEK Council agrees with the proposal to create a special economic zone in Sanur and (the government) will soon finalize this fact in a Government Regulation embracing a KEK Sanur.”
Establishing a special economic zone in Sanur, Bali will be home to Indonesia’s first integrated medical health facility.
Airlangga said he hoped this development would save Indonesia’s foreign exchange while enhancing the national economy by transferring knowledge and technology from establishing a world-class medical campus in Sanur.
Airlangga said that creating a Special Economic Zone in Sanur will create a demand for human resources and stimulate new investment. By 2030, the Minister hopes that the segment of between 4% to 8% of the Indonesian public, representing between 123,000 to 240,000 people now seeking medical treatment overseas, will be able to seek medical care in Sanur.
Projected through 2045, the total foreign exchange savings will equal Rp. 86 trillion and generate 19.6 trillion in additional foreign exchange for the National Economy.
The special economic zone established in Sanur will showcase medical and tourism projects, including hospitals, clinics, hotel accommodation, an ethnomedicinal botanical garden, MICE facilities (meeting, incentive, conference, and exhibition), and a commercial center. The total land area projected for the KEK Sanur is 41.26 hectares, with investments worth Rp. 10.2 trillion.
3,647 jobs are expected to be created by the Special Economic Zone.
At the center of the Sanur Special Economic Zone is the Bali International Hospital, now being built in Sanur in cooperation with the prestigious USA Mayo Clinic.
The Indonesian government seeks to stimulate national economic development by establishing special zones themed in various sectors, including digital enterprises, maintenance-repair-and-overhaul (MRO), education, and health.
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