Indonesia, November 2026 – State-owned railway operator PT Kereta Api Indonesia (KAI) has earmarked more than Rp2 trillion (approximately US$120 million) for a rail transport project in Bali, with construction expected to begin in 2027. The project will be developed in two phases over an estimated two-year period, according to KAI President Director Bobby Rasyidin.
The first phase will connect I Gusti Ngurah Rai International Airport with Legian, while the second phase will extend the route from Legian to Canggu. KAI has begun assessing implementation requirements, including land acquisition, following discussions between Rasyidin and President Prabowo Subianto.
The proposal builds on an agreement signed in September between KAI, the Bali provincial administration and the Badung regency administration to develop a battery-powered electric tram system along the airport–Canggu corridor. The planned route is approximately 12 kilometres long and is intended to serve an area with daily mobility of up to 150,000 people and 80,000 vehicles.
The electric tram, also referred to by provincial authorities as an autonomous rail rapid transit (ART) system, is expected to replace an earlier mass rapid transit proposal that failed to attract sufficient investor interest after breaking ground in 2024. The project is intended to improve connections between the airport, hotels, tourist attractions and accommodation areas, while considering the needs of local communities and environmental protection.
The initiative forms part of Bali’s wider effort to expand public transport options as tourism growth and economic activity increase pressure on its road network. Persistent congestion, limited public transport coverage and high private vehicle usage have strengthened the case for mass transit investment. Other proposed connectivity improvements include the Gilimanuk–Mengwi toll road extension and a water taxi service linking the airport with Canggu.
Source: The Star (Jakarta Post/ANN)
KAI Allocates US$120 Million for Bali Airport-to-Canggu Rail Project
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Indonesia is advancing plans for a rail-based public transport system in Bali, with state-owned operator PT Kereta Api Indonesia (KAI) allocating more than US$120 million for development. The proposed two-phase project aims to improve airport connectivity and reduce congestion along the island’s busiest tourism corridor.
