Indonesia’s New President, Prabowo, Pledges to Build North Bali Airport
Indonesia’s new President, Prabowo Subianto, stated his commitment to developing North Bali Airport during his first official visit to Bali earlier this month. The project would mean a second international airport in the province, a plan which was previously shelved by Jokowi Widodo.
North Bali International Airport (Bali Buleleng Airport) is a new airport development project that will provide the Indonesian island of Bali with a second commercial airport.
During his visit, Prabowo said ‘we will make Bali the new Singapore, the new Hong Kong,’ stating that the region’s leaders need to think big and rule out no possibilities. The proposed plans for the airport would be built in Buleleng Regency, constituting one of the largest infrastructure projects in Bali in recent years. The airport is forecasted to serve approximately 32 million passengers per year and would likely cost in the region of 17 trillion rupiah (US$1.07 billion). If successfully completed, the project would undoubtedly have a significant impact on both Bali’s tourism and business landscape.
Currently, the project offers both opportunities as well as challenges. For now, visitors to the island pass through I Gusti Ngurah Rai International Airport, which creates congestion in the south of the island. Most tourist infrastructure and activities are centered within this small region of the island due to their proximity to the airport.
As the journey from south to north Bali can take between two and six hours by car, there are significantly fewer tourists in the north. Creating such easy access to less developed areas of Bali would likely bring more wealth to northern regencies, a point which Prabowo echoed when stating ‘all Indonesian people must enjoy prosperity, not just a handful of people.’
The new president also commented that Balinese culture must be preserved and that cleanliness was necessary to maintain Bali’s status as a tourism hub. Nevertheless, there are concerns about the impact that an airport in Bali’s north could have on the environment, local nature and communities, as well as on tourism in the south.
Recently, we’ve seen the Ministry of Maritime Affairs considering a pause on all tourism-related PT PMA permits for foreign investments in the Sarbagita region (Denpasar, Badung, Gianyar and Tabanan), although these measures have not been officially enforced. If these proposals do come into effect, and plans for North Bali’s Airport commence, it’s likely we would see an influx of foreign investment in the island’s north. Primarily, investment opportunities would be centered around hotels, transport services and retail outlets. Whilst such developments may bring wealth to the region, some are worried that they may cause the same issues caused by over tourism elsewhere in the island.
North Bali has many stunning tourist destinations, such as beaches, waterfalls, lakes, and temples.
Contending with these concerns are the very real problems that south Bali residents are dealing with on a daily basis. Having a large concentration of tourists in a small region is contributing to a myriad of issues, from water shortages in the tourist hub of Uluwatu, to heavy congestion, pollution, and the decimation of natural habitats. As Tjok Bagus Pemayun, the Head of Bali Tourism Office, has stated ‘the roads cannot be widened anymore, and vehicles continue to increase along with the number of tourist visits.’
For businesses considering investments in Bali, careful planning is most definitely required. Conversations about the future of Bali are still underway, and whilst the project’s scope suggests significant opportunities, waiting for more specific details regarding the project's timeline would be wise. Considering the financial capital and the scale of the construction involved, the airport most likely would require a considerable amount of time to be completed.
If the project progresses, it will directly shape the island's future. Maintaining the balance between environmental preservation, local culture, tourism and investors’ interests will be crucial for Bali.
North Bali has pristine natural charm and a rich, deeply rooted Balinese culture
For Bali-based businesses and investors interested in knowing more, we will continue to share information as things evolve. If you’d like to speak to one of our business consultants at Bali Solve about changing regulations, company/PT PMA set up in Bali or practically anything else business related, we would love to assist you. Simply drop by our office in Pererenan or contact us via WA to arrange a meeting today.
Written by Team Bali Solve
