Indonesian Government and South Korean Investor Team Up for Bali’s LRT

Oct 2024

The Indonesian government is moving forward with plans for a Light Rail Transit (LRT) system in Bali, estimated to cost approximately USD 10.8 billion. Minister of Transportation Budi Karya Sumadi indicated that the project will involve both domestic and foreign investors, with the provincial administration in Bali appointing Bumi Indah Prima to lead the investment consortium.

A South Korean investor is reported to be actively participating in the project, alongside several local investors who have expressed interest in joining the initiative. The LRT development will unfold in four phases, with the first phase designed to connect I Gusti Ngurah Rai International Airport to Canggu via Seminyak and Berawa. The subsequent phases will extend the network from the airport to Nusa Dua through Jimbaran and Pandawa, connect Kuta to Sanur via Renon and Sesetan, and finally link Renon to Ubud through Sukawati.

To finance part of the project, the South Korean government is expected to contribute through an Official Development Assistance program amounting to approximately USD 580 million. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has previously indicated hopes that construction could commence by early 2024. The initiative is viewed as essential for mitigating traffic congestion in the region, particularly as Ngurah Rai Airport is anticipated to accommodate 24 million passengers by 2025.

(Source: Indonesia Business Post)

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