Local news wires are reporting that local government has revised Regional Regulation No. 16 of 2009, which concerns itself with provincial spatial planning, (RTRWP), to accommodate the construction of the new airport and its accompanying infrastructural developments.

Ketut Kariyasa Adnyana, Chairman of the Special Committee for Discussion on RTRWP, Regional Regulation Revision in Bali's Regional People's Representative Assembly, told Bali Post "we have installed the airport on the RTRWP … (and) it automatically changes the transportation structure in Bali, regarding toll roads, railroads, and so on."

Increasing capacity

Kariyasa added that the new airport is very important for Bali's future. The Straits Times report it will have a capacity of over 30-million passengers a year, compared to the current 20-million or so going through Ngurah Rai in the south of the island.

Ngurah Rai International Airport in the south of the island is being replaced by a larger facility on Bali's north coast. Image by Mike on Flickr.

Infrastructure is key for such a plan to succeed. Gapura Bali reported recently on the opportunities this could bring, quoting Antara News and the Vice Governor as saying that in order for the new airport project to be successful it must run in tandem with the construction of expressways, sport tourism, world trade centers, yacht harbors monorails and train links.

Karyasa confirmed this had to be done before the airport was built not after. Shortcuts reducing travel time from the north coast to the central highlands and the south, for example, have already begun in the Regency of Buleleng and the Governor has already inaugurated the Denpasar-Buleleng short cut road that starts at points 5-6 in Pegayaman Village, which is slated to be completed by 2021.

One Island - One Management

There has however, been a degree of skepticism around plans for the new airport, with has a history of delays in issuing location permits and lackluster support from the Ministry of Transport. But since the arrival of Wayan Koster and Cok Ace as Bali's new Governor and Vice Governor in June 2018, things have been much more focused.

The new administration's plan was to call for a "One Island, One Management" policy under a new Grand Design for Tourism, which it was hoped would address the issues of inequality and a fairer distribution of wealth across the island.

Gapura Bali recently reported that Koster believes the North Bali airport will be of great benefit not only to the regencies of Karangasem, Klungkung, Bangli and Jembrana but also to Bali as a whole as it would address the current imbalance of wealth and development between the north and south of the island.

Spreading investment across Bali

There is no other way to address this imbalance, Koster told Detik, as equitable development should be for everyone's benefit. He asked local communities to support the project as it is "for the common interest, for the future of all of us," he said.

Bali's north coast is a popular destination for dolphin watching. Image by Tiomax80 on Flickr.
 
The north and east of the island are likely to be some of the first areas to feel the benefits. The Regency of Klungkung, for example, which includes the offshore islands of Nusa Lembongan and Nusa Penida will be better connected through improved road networks, ports and possibly even rail links suggest Bali Post.

This could herald an era of golden opportunity in terms of business investment in Bali as could the latest announcement from the Central Government around Regulation Number 45 of 2019, concerning Amendments to Government Regulation Number 94 of 2010, which affect Taxable Income Calculations and Repayment of Income Taxes in ongoing attempts to streamline processes, reduce red tape and improve investor confidence.

Super Tax Deduction

According to local news wires this regulation was signed by President Jokowi on June 25, 2019 and it is expected to improve the quality of Indonesia's workforce by offering tax incentives to those investors developing businesses that improve the quality of labour and human resources. And in so doing, it not only improves Indonesia's long-term competitiveness but also provides more stability and legal certainty for foreign investment.

In Article 29B of this so called Super Tax Deduction,  "domestic taxpayers who carry out work practices, apprenticeships, or learning activities in the context of human resource development and development are given a reduction in gross income of a maximum of 200-percent of the total costs incurred," report Hukum Online.

Sources: Bali Post, Gapura Bali, Detik, The Straits Times, Hukum Online, DDTC, Sekratariat Kabinet Republik Indonesia, Antara News

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