Indonesia is on a fast track to modernize its public infrastructure. After the high-speed railway connecting Jakarta and Bandung, now the spotlight shifts to the island of Bali. The construction of its Light Rail Transit (LRT) system is set to commence in September 2024.
Private-funded Subway
Bali is getting its very own train system! This underground mass transportation project is officially named the Bali Urban Rail and Associated Facilities.
What’s cool about this? Unlike other big projects in Indonesia, this one isn’t funded by the government. The budget doesn’t come from state nor regional funds. It’s all private money from a consortium of investors and international partners. This innovative funding model underscores the project’s potential to catalyze economic growth and development in Bali.
‘Total investment for the first two phases is USD 10.8 billion. And for all four planned phases, it’s USD 20 billion,’ said Ari Askara, CEO of PT Sarana Bali Dwipa Jaya, the company tasked with developing this project.
What’s also unique is the reason why investors and global partners are interested in funding this subway project. The target market isn’t just locals, but also tourists who want to explore Bali. Besides solving traffic congestion, the Bali LRT is also expected to improve connectivity between tourist hubs. Getting around will be faster and easier!
A Four-phase Plan Network
As Ari Askara said, the Bali LRT project is divided into four distinct phases, each designed to connect key tourist hubs and residential areas:
1. I Gusti Ngurah Rai Airport – Kuta Central Park – Seminyak – Berawa – Cemagi
2. I Gusti Ngurah Rai Airport – Jimbaran – Udayana University – Nusa Dua
3. Kuta Central Park – Sesetan – Renon – Sanur
4. Renon – Sukawati – Ubud
The first two phases are scheduled for completion by early 2028, with the entire project expected to be operational by 2031.
Bali LRT Boosts the Economy
Once fully implemented, the LRT will revolutionize transportation in Bali. And as the island evolves into a better-connected hub, businesses are expected to benefit significantly from the increased mobility. Including the real estate market.
Improved accessibility and the potential for new developments along the route will significantly boost demand for both commercial and residential properties, especially in the areas surrounding stations, business districts and popular tourist spots.
There will be numerous job opportunities during the construction phase and upon its completion. The LRT is anticipated to attract new investments and more businesses to Bali, further diversifying the island’s economy. The possibilities are endless.
Unlock Business Opportunities in Bali
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