Bali’s Northern Transformation: New Airport and Infrastructure Set to Rebalance Tourism

Indonesia has set plans in motion for a new international airport in North Bali's Buleleng Regency, aimed at redistributing tourism flow and alleviating congestion in the south. This ambitious project includes constructing a 900-hectare artificial island reclaimed from the Bali Sea and is expected to be completed by 2030. With a budget of US$3 billion, funded by the Chinese firm BIBU Panji Sakti through a public-private partnership, the project will not utilize taxpayer money.

The new airport, strategically located in Bali's most populous regency, is designed to accommodate 85,000 flights annually, potentially adding 10 million visitors to the island. The infrastructure will feature two commercial and freight service areas, along with facilities for speedboats, yachts, and cruise ships. Additionally, a 100km rail network connecting Kubutambahan with the existing Ngurah Rai Airport and a 60km toll road linking Kubutambahan to Mengwi are set to enhance connectivity.

Indonesian President Prabowo Subianto has expressed his commitment to transforming Bali with this project, envisioning it as a new hub akin to Singapore or Hong Kong. He stated:

“I am committed to building a North Bali International Airport. We will turn Bali into the new Singapore, the new Hong Kong with the (new airport) area as its epicentre.”

Complementing the airport, plans include developing a new city featuring five-star hotels, convention halls, theatres, housing, tourist attractions, and a global film production hub—dubbed "Baliwood" by project officials.

“We will build a new city to support the airport. There will be five-star hotels, convention halls, theatres, housing, tourist attractions. There will be, what I say, a global film production hub. (The United States) has Hollywood and we will have Baliwood,” Erkanto elaborated.

However, this development has sparked concerns about its potential impact on local communities and the environment. Ketut Artawan voiced apprehensions based on experiences from South Bali:

“We have seen the impact an airport had on South Bali: Crimes, unruly tourists and the disappearance of villages, rice fields and forests. We don’t want these things to happen in Buleleng.”

Others see the airport as a necessary step towards economic growth in North Bali. Anak Agung Ngurah Sukarsana emphasized the need for balanced development across the island:

“It is important for us in the south to also think about our brothers in the north. They also need tourists and investors to come to their area.”

He further highlighted the economic challenges faced by residents of Buleleng:

“I have had members of my extended family leaving Buleleng because there is simply no work for them here. There are just not enough tourists.”

Yet, not all are convinced that replicating South Bali's model is beneficial. Putu Yoga warned against losing North Bali's unique charm:

“There are tourists who want to stay away from the hustle and bustle and look for serenity. Some want to go off the beaten path and travel where no other tourists go. Some look for an authentic Balinese experience and don’t want to stay in modern hotels or go to modern restaurants. If North Bali ends up looking just like the south, these people will not come to Bali and go elsewhere.”

To prevent negative consequences seen in South Bali such as traffic congestion and unsustainable tourism practices, Askara assured:

“We have seen how a lack of regulation created crippling traffic, over-tourism and unsustainable tourism practices in the south. We will do what we can to prevent that from happening to Buleleng.”

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