Bali airport developer signs agreement with Chinese company


Tourism investment: A villa under renovation next to rice fields in Canggu, Bali. Amid resistance to mass tourism, Subianto says the development of a new airport in the island’s north would help turn the province into a “new Singapore or new Hong Kong”. — AFP

JAKARTA: A project for a new airport to be built in northern Bali has moved forward with its initiator, PT BIBU Panji Sakti, signing a heads of agreement (HoA) with a Chinese company, ChangYe Construction Group.

BIBU Panji Sakti president director Erwanto Sad Adiatmoko Hariwibowo said that two weeks after signing a memorandum of understanding (MoU) at the Indonesian Embassy in Beijing, the partnership continued with the signing of an HoA.

“We keep moving forward at full speed to ensure that the project is in line with Pak President’s instructions.

“The signing of this HoA is concrete proof of what we’ve been working on,” Erwanto was quoted as saying by news agency Antara on Sunday.

Erwanto explained that the project had secured US$3bil in investment to accelerate the development of Bali’s new international airport, which is now set to be completed by the end of 2027.

The development will cover three main areas – namely the airport itself, the urban development in the direct vicinity, or aerocity, and the development of the wider area, or aerotropolis.

BIBU Panji Sakti said that the land rehabilitation methods that will be used for the airport’s development will not sacrifice productive land, residential land, places of worship or historical sites in Buleleng regency.

The developer planned to lease the community land without changing any land ownership rights.

During the MoU signing at the business forum held by the Indonesian Embassy in Shanghai, China, ChangYe Construction Group president director Yu Xueze highlighted the company’s commitment to develop the new international airport.

“This north Bali international airport project is a remarkable work that reflects the harmony of culture, nature and humans. We are proud to be part of this initiative with its global impact,” he said.

Djauhari Oratmangun, Indonesian Ambassador to China, also lent his support for the project, which he described as evidence of the close relations between Indonesia and China, particularly in strategic partnerships for investment and development.

The idea to build a new airport in Bali was mooted in 2016, but sparked some debate among political elites and raised concerns about a tourism glut.

Former president and Indonesian Democratic Party of Struggle chairwoman Megawati Soekarnoputri expressed her opposition to the project, arguing that the airport’s development would put local people at risk of being marginalised and would only benefit tourism investors.

The project was eliminated from the national strategic project (PSN) list in 2022 by then-President Joko “Jokowi” Widodo amid a lack of political support.

In a visit to Denpasar, Bali, on Nov 3, President Prabowo Subianto vowed to continue the development, claiming that a new airport in the island’s north would help turn the province into a “new Singapore or new Hong Kong”.

The head of the Bali Tourism Office, Tjok Bagus Pemayun, has thrown his support behind the plan, though he also noted that it would need to be reviewed further.

He argued that the new airport would help spread tourism more evenly across the island, alleviating overcrowding and traffic congestion in the southern region.

“The central government’s decision to build the new airport must have undergone a preliminary assessment,” he said, adding that safety had to be the priority in the airport’s development, with advanced technology to ensure local sites are not put at risk. — The Jakarta Post/ANN

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