The island of Bali, known for its picturesque landscapes and rich culture, has become one of the most popular tourist destinations in recent years. Due to the increased flow of tourists, Bali has faced various problems, and as a result, the government has begun active work on developing the island. The plan is designed for years ahead, up to 2035, with several measures already being implemented today. Many foreigners who have come to start a business in Bali have noticed these changes. Here is a detailed look at the government’s plans to improve the island over the next decade.
One of the most noticeable issues, especially for tourists, is traffic congestion. Endless streams of vehicles, frequent traffic jams, and poor road quality create significant difficulties for both travelers trying to get from one part of the island to another and for the local residents themselves.
As the first solution to transportation problems, the Indonesian government has announced the start of construction of the first railway in Bali in the second half of 2024. According to Minister Budi Karya Sumadi, the planned length of the railway will be 30 km. The line will stretch from Ngurah Rai International Airport to Kuta, and later it will be extended to Seminyak and Canggu.
This year, construction will also begin on a new highway with bike lanes from Gilimanuk to Mengwi. This highway will provide a more convenient way to travel around the island than flying.
In addition to the railways, a new international airport is planned to be built on Bali by the major construction company China State Construction Engineering Corporation in the coming years. The airport will have a runway nearly four kilometers long and is expected to serve twenty million tourists annually. It will be located in a coastal area fifteen kilometers from Singaraja. Thanks to this decision, part of the West Bali National Park will not be cleared.
In Bali’s Jembrana district, the largest rural area with dense forests and inaccessible mountains, tourism is currently underdeveloped. To attract tourists and encourage the growth of small and medium-sized businesses in Bali, the opening of the Universal Park & Gardens Bali theme park, the largest in Southeast Asia, is planned by 2025. The park will cover an area of 60 hectares and offer a variety of entertainment for all age groups, not just children. Investment in the project is around $1 billion.
Indonesia is the eighth-largest emitter of greenhouse gases. The government is optimistic about achieving "net-zero" carbon emissions by 2060, and Bali aims to reach this goal by 2045. To support this mission, in December 2023, South Korea and Indonesia agreed to jointly develop an "electric ecosystem" in Bali. This project aims to use electric vehicles as public transport in Denpasar and the districts of Badung, Gianyar, and Tabanan. The initiative includes research, financial planning, supply of electric buses, and infrastructure, including charging stations. Special attention is given to electric vehicles for personal use and hydrogen energy for heavy transport.
Bali has long struggled with waste management issues, negatively impacting the island’s ecology and tourism appeal. Major challenges include insufficient waste recycling infrastructure and a large amount of plastic being dumped into the ocean. The Indonesian government recognizes the severity of the situation and is developing comprehensive measures to improve it. Plans include building new recycling plants, tightening waste management legislation, and developing material recycling programs. One recent step taken to address this issue is the introduction of a tourist tax. About 50-70% of the funds collected will be directed towards solving the waste crisis.
As Bali is a tourist hub in Indonesia, significant emphasis is placed on improving healthcare for travelers. Large investments have been made to create the Bali International Hospital; a major international medical complex located half an hour from the airport in the eastern part of the island. The facility is expected to boost medical tourism in Bali, as it will cater not only to island tourists but also to foreigners seeking wellness programs. The complex is planned to open in the second half of 2024.
In addition to the above, the government has ambitious plans for the development of Bali and Indonesia as a whole. Special focus will be placed on continuing tourism development, modernizing infrastructure, supporting farming through innovative training programs, advancing information technology, and more.
In conclusion, government development programs aim not only to strengthen the island's economic potential but also to preserve its unique natural landscape and cultural diversity for future generations. Bali’s future looks promising, with the state particularly supporting foreign investors and entrepreneurs who come to start businesses in Indonesia and contribute to economic growth. If you also want to join them and start or expand your business in a new country — our company, Good Luck Group, offers a wide range of consulting services to facilitate and expedite the process of establishing your company. Contact us if you have any questions!
