Bali Secures Funding to Develop New International Airport Aiming to Transform Tourist Island
June 30, 2025 – Bali, Indonesia — A significant milestone has been reached in the realization of the North Bali International Airport, set to become Bali’s second international airport and a major development project designed to boost the island’s tourism and economic growth. Located in Buleleng Regency in northern Bali, the airport is planned to exceed the capacity of Bali’s current main air gateway, I Gusti Ngurah Rai International Airport in Denpasar.
Project Progress and Funding Secured
The President Director of PT BIBU Panji Sakti, Erwanto Sad Adiatmoko, announced that construction for the airport may begin by the end of 2025. “This year it must be. Maybe a matter of months. I am not ahead of God. We are waiting for the location of the groundbreaking to be prepared by the Ministry of Transportation. Just wait for time,” he told the media.
Critically, the project’s financing has been firmly secured, with a total of IDR 50 trillion (approximately USD 3.09 billion) committed to the airport’s construction and its associated infrastructure. This funding is drawn exclusively from private sources, including investment from Chinese partners, and will not impact Indonesia’s state budget. Although the airport project is listed in Indonesia’s National Medium Term Development Plan (RPJMN) 2025-2029, no government budget funds will be utilized for the build.
Beyond the airport itself, the funds will also support the development of complementary facilities such as an Aerotropolis—a large urban hub integrating airport functions with commercial, residential, and leisure amenities—an Aerocity, and related toll roads.
Government Support and Strategic Importance
Indonesia’s Minister for Community Empowerment, Abdul Muhaimin Iskander, expressed strong governmental backing for the project. He stated that the airport’s construction will proceed as soon as the precise site is confirmed and land acquisition finalized. “I talked to the president many times, and the president is also okay. The president’s blessing has been obtained, technical equipment has been prepared and we will continue to try and realize the North Bali International Airport as soon as possible,” he commented.
Minister Iskander emphasized that the airport is one of several initiatives aimed at accelerating economic development in northern Bali. He reiterated President Prabowo Subianto’s commitment to ensuring Indonesia remains competitive within Southeast Asia’s development landscape: “As the president said, we cannot lose to neighboring countries. And the only project qualified to quickly outpace the neighboring country is [North Bali Airport] and everything is fulfilled.”
President Subianto, a long-standing advocate for the airport, made developing the North Bali International Airport a key promise during his electoral campaign in Bali. During a follow-up visit to Denpasar early in his presidency, he pledged unwavering support for the project: “North Bali Airport as I have conveyed that I am committed, I want to build North Bali International Airport,” he said.
The President highlighted his vision for the airport as a catalyst to transform Bali into a regional hub akin to Singapore or Hong Kong. “We will make Bali the new Singapore, the new Hong Kong, where we will be the center of this region,” he declared, urging all Indonesians to unite in pursuing widespread prosperity.
Anticipated Impact and Features
Initial plans forecast that North Bali International Airport would accommodate up to 32 million passengers annually, effectively surpassing the current main airport’s capacity. The development aims to incorporate a variety of facilities spanning a full-fledged aerotropolis, including a power plant, retail outlets, lifestyle venues, and entertainment options, thereby creating a comprehensive urban and travel ecosystem.
The project is also expected to generate more than 200,000 jobs, offering substantial employment opportunities for local communities as the airport and supporting infrastructure come online.
Community Reactions and Concerns
While the project promises considerable economic benefits and modern infrastructure, some local voices have expressed concern. Critics worry that the massive increase in tourism capacity could exacerbate over-tourism and environmental degradation on the island, already grappling with infrastructure challenges, waste management issues, and preservation of natural resources.
Questions also arise regarding reliance on foreign private investment, primarily from Chinese investors, and what implications this may have on Indonesia’s sovereignty and economic independence.
Looking Ahead
With funding secured and political will firmly behind the initiative, the North Bali International Airport project appears poised to move from planning into construction. It will represent a transformative chapter in Bali’s development, designed to elevate the island’s position as a premier international tourism and business destination while also stimulating regional economic growth.
The project team and government stakeholders remain focused on expediting land acquisition and technical preparations to begin construction by the year’s end, marking a new era for Bali’s transportation infrastructure and economic future.
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