We reported in Gapura Bali on February 28, 2018 that Canadian investment firm, Kenesis Capital and Investment (KCA), had injected IDR 27 trillion (around USD 2 billion) into the proposed North Bali International Airport project (Bandara International Bali Baru or BIBU), despite unexplained delays in issuing location permits.

We're now learning the location permits have not been issued yet because the Ministry of Transport does not see the project as being a priority.

Local news wires quote Transportation Minister Budi Karya Sumadi, as saying “We prefer to empower the existing I Gusti Ngurah Rai International Airport instead."

This comes at a time the government is looking for solutions related to the problems of passenger density at Ngurah Rai and amid plans for Bali's hosting of the upcoming IMF-World Bank Annual Meeting in October.

Sumadi explained the Transportation Ministry was still conducting a thorough study on the social, cultural and environmental impact of the proposed plan.

However, Coordinating Minister for Marine Affairs Luhut Binsar Panjaitan went one step further according to Tribun Bali, saying the construction of the North Bali International Airport had been canceled. 

Referring to the results of a World Bank and Multi Infrastructure study, Luhut told the press crew at the Presidential Palace complex in Jakarta there were four primary reasons for cancelling the project:

1. Rail access

There currently isn't any and a new airport does not make sense without it. According to Luhut, and without going in to details, building a railway in Bali is not such a good idea.

2. A new runway at Ngurah Rai

The government is prioritizing the development of Ngurah Rai International Airport and plans to build an additional runway there.

3. Improved parking

Luhut also said the government will increase airplane parking at Ngurah Rai Airport, thereby increasing its capacity.

4. Sea access

Apparently the government are also moving forward with developing sea access with the Roro shipping line from the Port of Banyuwangi in East Java to Bali's north coast. It is hoped this will reduce current road traffic to Denpasar by as much as 40%.

I Made Mangku, President Director of PT Bali International Airport (PT BIBU), Panji Sakti, refused to comment on what he sees as 'rumours'.

He told AirMagz that an official letter stating that location permission (locally called Penlok) either can or cannot be given was necessary. "It must be in black and white," he said.

Besides, he claims the study referred to by the Coordinating Minister for Marine Affairs was focused on railroads not the advantages and disadvantages of the North Bali international airport. If railroads were not appropriate for Bali for whatever reasons, other options such as toll roads should be looked at.

Made Mangku went on to reiterate PT BIBU was not using any funds from the government. The entire project would be funded by the private sector. There are currently 16 investors involved coordinated through Kinesis Capital and Investment (KCI) to the tune of USD 2 billion.

Sources: The Jakarta Post, Kompas, Tribun Bali, AirMagz, Coconuts Bali, Nusa Bali

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