The North Bali International Airport (Bandara International Bali Baru or BIBU) took another step closer to becoming reality recently when PT Bali International Airport (PT BIBU) Panji Sakti and Canadian company, Kenesis Capital and Investment (KCA), agreed terms for an investment of USD 2 billion (about IDR 27 trillion) into the project, according to local news wires.

Chief Technical Officer of Kinesis Airport Consulting, Shad Serroune explained to Kontan that the project would be "entirely funded by Kenesis from the beginning until completion."

Why a new airport?

Tourism in Bali is concentrated in the southern part of the island closest to the existing Ngurah Rai International Airport, which despite a recent renovation, is struggling to cope with an ever-increasing number of visitors, especially during conferences. There is also speculation around plans to extend Ngurah Rai's existing runway along with other logistical upgrades necessary to deal with an increased capacity.

According to The Jakarta Post, the new airport will be designed to accommodate up to 32 million passengers per year through a 230,000-square-meter terminal and a 4,100-meter long runway, which will require just over 1,000 hectares of land.

PT BIBU's Project Advisor, Freddy Numberi explained to Detik that when Ngurah Rai gets overloaded flights are often diverted to Surabaya or Yogyakarta. It makes more sense to develop another airport in a different part of the island rather than send flights to other places. It would also create economic benefits for residents located in the north of Bali, he argued.

The new airport development is also aimed at promoting the North's many attractions such as Tulamben, Nusa Penida and the West Bali National Park as well as opening access to Banyuwangi in East Java and Lombok in West Nusa Tenggara.

West Bali National Park is estimated to cover 10% of the island's total land area.

Nobody disagrees with this objective. The question has always been where in the north to develop the new airport.

The latest answer is off the coast of Kubutambahan. At least some of it. Kontan are reporting half of the airport will be built on the sea by extending the land and the rest onshore. 

Why Offshore?

Made Mangku, President Director of the Project Developer (PT BIBU), told The Jakarta Post that the company preferred to develop an offshore airport because a 100% onshore option would involve moving or relocating dozens of Hindu Temples, historical sites, people's homes and rice fields. This would be a very complicated and time-consuming (perhaps impossible) hurdle to overcome.

Besides, Bali Governor, Mangku Pastika, has prohibited any taking over of productive land, temples or historical sites for the development of the new airport.

Although the cost of developing offshore is more expensive, it is being seen as more effective, because it does not involve land acquisition and its many complications. 

Why is it taking so long?

Freddy expressed his surprise as to why permissions and permits from the Minsitry of Transportation are taking so long. He said applications filed with two different Transportation Ministers, Ignatius Jonan and Budi Karya Sumadi, still remain unresolved despite the directives of the President and the Secretatry of State.

What's needed are approvals from the Regent of Buleleng, the Governor of Bali and the Ministry of Transport, Shad Serroune told Kontan. "We do not know where the problem is. Everything is in accordance with the requirements of the Penlok (determination of location) submission."

If a location is finalized and all permits issued, estimates are it will take less than three years before the airport is completed.

This article was previously publish on Gapura Bali

Sources: The Jakarta Post, Tempo, Detik, Kontan, IK News, Tribun News, Kompas

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