HomeAsiaIndonesia’s Bali subway plan stalls over investor concerns and feasibility
Asia

Indonesia’s Bali subway plan stalls over investor concerns and feasibility

PressNewsAgency
By PressNewsAgency

A US$20 billion plan to build an underground light rail in Indonesia’s Bali has stalled due to wary investors and concerns over land scarcity, throwing into question whether the island’s long-promised solution to solve its notorious traffic gridlock would ever get off the ground.
More than a year after its ceremonial groundbreaking, the “Bali Urban Subway” remains in the feasibility-study phase. Officials once hailed the project as a game changer that would ease congestion and preserve the island’s tourism appeal, but progress has been dogged by financing and land acquisition hurdles.

The venture began with fanfare when the Bali government and PT Sarana Bali Dwipa Jaya (SBDJ), which oversees the project, launched a Hindu cleansing ritual, or ngeruwak, at the construction site in September last year. At the time, SBDJ announced PT Sinar Bali Karya as the main contractor of the project, which will team up with another local firm Indotek and China Railway Construction Corporation.

PT Bumi Indah Prima, a consortium of Indonesian companies, was tapped as lead investor and in December bought land near the sacred Tanah Lot temple from property tycoon Hary Tanoesoedibjo’s MNC Land for 5.5 trillion rupiah (US$331 million).

Ari Askhara, chief executive of SBDJ, eventually stepped down from the position because of personal reasons, his successor Dodi Miharjana said in April.

“Our main focus remains on ensuring the smooth running of the Bali subway project, and that it continues as planned,” Dodi said, as cited by news outlet Detik Bali.

Source link

Discover more from PressNewsAgency

Subscribe to get the latest posts sent to your email.

- Advertisment -