The proposed North Bali International Airport project, long discussed as a solution to the island’s regional development imbalance, is reportedly set to move forward following statements by high-ranking government officials.
As reported by Antara, Coordinating Minister for Community Empowerment, Abdul Muhaimin Iskandar, commonly known as Cak Imin, confirmed on Thursday, 26 June 2025, that President Prabowo Subianto had given his approval for the development of the airport.
“I talked to the president many times, and the president is also okay. The president’s blessing has been obtained, technical devices have been prepared, we will continue to try so that the North Bali International Airport can be realised as soon as possible,” Muhaimin told reporters during his visit to Gianyar, Bali.
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The project, proposed by PT BIBU Panji Sakti, awaits location determination (Penlok) from the Ministry of Transportation before construction can begin. According to the 2025–2029 Medium-Term National Development Plan (RPJMN), the North Bali International Airport is among the strategic projects intended to boost infrastructure and economic equality across the archipelago.
Muhaimin emphasised that this airport would play a key role in accelerating development in northern Bali, which has historically lagged behind the southern region in terms of tourism and economic activity.
“With the construction of the North Bali International Airport, it will attract the acceleration of economic development in the north region,” he said. “That way Bali will become a truly strong destination not only culturally, but also economically.”
Governor Koster Responds with Doubts
Despite the national government’s statements, Bali Governor I Wayan Koster expressed concern regarding the feasibility of the project, particularly regarding the financial capability of the initiating company, PT BIBU Panji Sakti.
“PT BIBU wants to build, where does the money come from? There is no coordination with the Bali Provincial Government,” Koster stated on Monday, 30 June 2025, as reported by Kompas.
Governor Koster’s remarks come in response to growing attention following Muhaimin’s visit and statements made in Gianyar. The lack of coordination between the central initiative and the provincial government has raised questions about the transparency and operational readiness of the project’s implementation.
While the Governor casts doubt on the company’s financial readiness, PT BIBU Panji Sakti maintains that funding has been secured and preparations are in place. The firm has been waiting for the issuance of Presidential Regulation No. 12 of 2025, which is considered critical for the airport’s development to proceed.
Funding Secured Without State Budget
The development of the airport, set to be located in Buleleng Regency, will not rely on the Indonesian state budget (APBN). Instead, funding will be sourced from a Chinese investor, ChangYe Construction Group, with a total investment commitment of IDR 50 trillion.
Erwanto Sad Adiatmoko Hariwibowo, President Director of PT BIBU Panji Sakti, confirmed that the funding will not only cover airport construction but will also support broader economic infrastructure projects linked to the airport’s development.
He stated, “We are just waiting for the regulation to be signed. The process of determining the location has already been handled by the Ministry of Transportation.”
The agreed financing structure involves a “turnkey” payment scheme, meaning the investor will bear the cost upfront and receive payment only after the project’s completion. This model is intended to reduce early-stage financial risk for the Indonesian side.
In line with national ambitions to strengthen Bali’s infrastructure, Muhaimin added that President Prabowo wants Bali to become competitive with neighbouring countries in terms of international-standard airports and connectivity.
“If what the president said, we cannot be inferior to neighbouring countries. And the only one in this republic that meets the requirements to be able to quickly beat the airports of neighbouring countries is Bali and everything is fulfilled,” said Muhaimin.
He also mentioned that the development of the airport would be followed by additional infrastructure, such as improved road access and facilities aligned with Balinese cultural customs.
