Major Infrastructure Upgrades Planned to Address Traffic and Waste Issues in Bali’s Top Tourism Destinations
Bali, Indonesia — As Bali enters 2026, the provincial government has announced ambitious infrastructure upgrades aimed at tackling longstanding issues that threaten the island’s tourism-driven economy. Governor Wayan Koster, now in his second term, has emphasized that resolving traffic congestion and waste management problems is critical to sustaining Bali’s economic growth and tourism appeal.
Bali welcomed 7.05 million international tourists in 2025, surpassing pre-pandemic levels of 6.2 million in 2019. Tourism remains the backbone of Bali’s economy, contributing approximately 66% to the province’s income. Governor Koster warned that if traffic jams persist, Bali risks a decline in visitor numbers, which would adversely impact the island’s prosperity.
To prevent this, the Bali Provincial Government has developed a five-year Priority Infrastructure Development Plan. The plan focuses on upgrading road networks and implementing transportation projects designed to connect northern, southern, eastern, and western Bali through the central region. This interconnected network aims to alleviate bottlenecks in key areas and enhance overall mobility for residents and tourists alike.
Funding is a significant hurdle, as the provincial budget alone cannot finance these mega infrastructure projects. Governor Koster has formally communicated the need for support to Indonesia’s Ministry of Public Works, which has expressed full backing for Bali’s development goals.
Alongside infrastructure improvements, the government is aiming to increase compliance with the Bali Tourism Tax Levy, a mandatory contribution of IDR 150,000 introduced in February 2024. Currently, only about 35% of tourists pay this levy, which is earmarked for cultural conservation, environmental protection, and infrastructure enhancement. The government plans stricter enforcement in 2026 and encourages payments through the official LoveBali app or website.
Governor Koster highlighted the urgency of addressing these issues, stating, “This traffic jam problem must be resolved. The region can’t afford the economic impact of continued congestion.”
These initiatives mark a pivotal year for Bali’s infrastructure and tourism sectors, with hopes that strategic investment and regulatory measures will preserve the island’s reputation as a premier travel destination in the years ahead.
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