Berita Terkait

Kamis, 30 Mei 2024

Minister of Investment: Bali Urban Rail as a Tourism Downstreaming Project

Denpasar, May 30th, 2024 – The Minister of Investment/Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia attended and gave his remarks in the inaugural event for the Submission of Investment Interests in Bali Urban Rail and Associated Facilities alongside the submission of Qualification Document by Consortium of PT Bumi Indah Prima and PT Sarana Bali Dwipa Jaya in Bali, Wednesday morning (29/5). This initiative marks the Bali Acting Governor's endeavor to develop and construct a train-based mass transportation corridor throughout Bali. This event commenced with the opening remarks from Acting Governor of Bali Sang Made Mahendra Jaya, followed by strategic directives from Minister Bahlil Lahadalia and Minister of National Development Planning/Head of the National Development Planning Agency (PPN/Bappenas) Suharso Monoarfa.

Minister of Investment/Head of BKPM mentioned the challenges posed by global dynamics to the world economy, highlighting Indonesia's resilient economic growth. Despite these challenges, Indonesia's economy grew by 5.31% in 2022, with sustained growth of 5.05% in 2023. Bahlil praised the rapid recovery effort from the Government of Bali Province, attributing the tourism sector as one of the pivotal factors.


Currently, the Ministry of Investment/BKPM is actively promoting downstream investment strategy to enhance the value of commodities across various Indonesian regions. Recognizing Bali's unique position short of traditional raw material commodities, the Minister emphasized the key role of tourism. He underscored the necessity of developing supportive infrastructure to optimize the sector's growth.


"Here in Bali, there are no downstreaming, such as mining activities found in other regions. Therefore, we are pioneering a train-based mass transportation system by utilizing a business-to-business model. This innovative approach represents a form of tourism downstreaming that is unparalleled in Indonesia," stated the Minister.


Furthermore, Bahlil reaffirmed the commitment of the Ministry of Investment/BKPM to smoothen the project's success through streamlined permit procedures. He expressed the willingness to provide investment incentives, including tax holiday and master lists (import duty exemptions), to expedite the program. However, he emphasized the importance of transparency, urging companies to uphold integrity in financial reports to prevent fraudulent activities.


"We, at the Ministry of Investment, are dedicated to expediting licensing procedures. We stand ready to fast-track permits, regardless of the victor " underlined Bahlil.


The Bali Urban Rail project, as outlined in Bali Governor's Regulation Number 9 of 2024, signifies a crucial step towards advancing transportation infrastructure in Bali. It is poised to revolutionize public transportation, fostering sustainable development across the island.


Acting Governor of Bali Province Sang Made Mahendra Jaya emphasized in his remarks the urgency of implementing modern transportation solutions to alleviate Bali's recurrent traffic congestion. The number of tourists coming to Bali during 2023 reached 15 million people, and by 2024 is targeted to achieve 20 million. Highlighting the region's growing tourism industry, Mahendra underscored the necessity of preserving Bali's cultural heritage amidst technological advancements.


"Bali, as a global tourism hub, demands a modern, eco-friendly, as well as punctual transportation system. As we embark on development endeavors, preserving our natural heritage and cultural values remains paramount," reiterated the Governor.


According to data from the Ministry of Investment/BKPM, investment realization on Bali Island reached IDR12.97 trillion in the 1st quarter of 2024. The highest investment realization from 2019 to Q1 2024 was dominated by the Hotel and Restaurant sector (IDR29.63 trillion), followed by Housing, Industrial, and Office Areas (IDR19.74 trillion), Other Services (IDR10.66 trillion), with the Transportation sector ranking fourth (IDR6.72 trillion). (*)



For further information please contact:

Ricky Kusmayadi

Head of Communication and Information Services Bureau

Ministry of Investment/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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