Global Investors Show Strong Interest in Bali Urban Rail Development Project

Global Investors Show Strong Interest in Bali Urban Rail Development Project

The plan to develop and build a train-based mass transportation corridor in Bali (Bali Urban Rail) is entering a new phase.

The Bali Urban Rail development is marked by the increasing interest of investors keen to invest their capital in the development of train-based transportation. One such investor, PT Bumi Indah Prima, has submitted qualification documents to PT Sarana Bali Dwipa Jaya (SBDJ).

SBDJ President Director Ari Ashkara informed that, so far, eight global investors have expressed interest in the Bali Urban Rail development project. “All of them are in the form of consortiums, three from Europe, two from China, two from Indonesia collaborating with foreign companies, and one from Malaysia,” he explained to the press.

The Ministry of Investment – Investment-Coordinating Board (BKPM) is ready to facilitate and expedite the licencing process for the Bali Urban Rail project to increase Indonesia’s tourism income. “The Ministry of Investment will push for licencing matters. Whoever wins, we will expedite licencing,” said the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, in his statement in Jakarta, on 30th May 2024.

Lahadalia added that Bali Urban Rail is a project with unique characteristics for increasing the country’s foreign exchange. This is because the Island of the Gods, geographically, does not have natural resources that can be utilised as downstream investment subjects. Nonetheless, Bali is the world’s favourite tourism destination. Therefore, improving modern public infrastructure is a solution to enhancing the welfare of the surrounding community through tourist attractions.

“In Bali, there is no downstream, no mining. Sorry, it’s not like other areas where there is oil and gas of all kinds. Therefore, we are developing a train-based mass public transportation system that uses a business-to-business model. This is a downstream version of tourism that other regions in Indonesia don’t have,” Lahadalia continued.

Besides speeding up the project licencing process, Lahadalia stated that his department is also ready to provide tax holiday incentives as well as a master list of import duty exemptions for companies implementing this programme. However, he emphasised that companies should be honest in reporting their profits because the government is prepared to investigate if there are indications of fraud.

The Bali Urban Rail project is encompassed in Bali Governor Regulation Number 9 of 2024 concerning the assignment to PT Penjaminan Kredit Daerah Province of Bali to collaborate in developing, financing, and implementing a train-based public transportation system.

It is hoped that the development of a train-based mass public transportation system can be a new milestone in the development of transportation infrastructure in Bali. The Ministry of Investment noted, furthermore, that investment realisation in Bali in the first quarter of 2024 has reached Rp12.97 trillion.

Source: indonesiaexpat.id

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